European Stock Markets Start the Week with Losses

The European stock markets began the week with slight losses after several weak weeks had already pressured prices. Particularly stocks in the real estate and technology sectors weighed on the market, as investors eagerly awaited statements from the European Central Bank (ECB) to gain insights into future interest rate policies. The continental STOXX 600 index recorded a decline of 0.2 percent in the morning. This performance downturn marks the first four-week losing streak in two and a half years, triggered by disappointing corporate earnings, rising government bond yields, and concerns about the economic impact of the policies of U.S. President-elect Donald Trump on the global economy. European tech stocks fell by 0.6 percent as investors prepared for the impending quarterly figures of AI leader Nvidia on Wednesday. The real estate sector led the losses, with most major sectors in the red. Special attention was given to upcoming speeches by ECB Chief Economist Philip Lane and ECB President Christine Lagarde. Additionally, the preliminary Purchasing Managers' Indexes (PMI) for the Eurozone, expected to be released on Friday, were anticipated as further insight into the interest rate path. However, analysts from Unicredit stated that these data are unlikely to have a significant impact and are expected to remain subdued. In a statement, ECB Vice President Luis de Guindos emphasized that global trade conflicts heighten the risk for the already weak economy in the Eurozone. Another ECB member, Joachim Nagel, remarked that the tariffs promised by Trump might disrupt international trade but ultimately would have only a "limited impact" on inflation. The market is currently pricing in a 72 percent probability of an ECB interest rate cut by 25 basis points in December and is expecting rate cuts totaling 142 basis points by the end of the coming year. British Melrose Industries rose by 8.6 percent after the company, which owns GKN Aerospace, reported a revenue increase of 7 percent for the period up to the end of October. Dutch technology investor Prosus improved by 1.3 percent following the release of a trading statement. In contrast, Grifols fell by 2.8 percent after it became known that the Canadian fund Brookfield is planning a takeover bid for the Spanish pharmaceutical manufacturer.