(Bloomberg) -- European stocks retreated as investors looked ahead to interest rate decisions from the Federal Reserve and the Bank of England following a rate cut by the European Central Bank last week.
The Stoxx Europe 600 Index fell 0.2% by the close. Retail stocks outperformed, while autos and the technology sector declined. Among individual stocks, French electrical equipment company Rexel SA jumped after its board rejected an unsolicited takeover offer from QXO Inc. Payments company Worldline SA extended Friday’s slump.
The main regional index just posted its best week in a month, trimming some of September’s declines as the ECB delivered the second quarter-point reduction in the deposit rate since June. This week, it’s the turn of the Fed and the BOE, with the US central bank widely expected to cut borrowing costs for the first time in more than four years. The BOE is predicted to hold off. The Bank of Japan is also due to deliver its decision on Friday.
“After the ECB’s interest rate decision, the markets could make a new attempt at new highs. The economic data and further global interest rate policy will determine the last quarter of the year, currently with a positive outlook,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM.
Miners recouped an underperformance driven by weak data from China over the weekend. The data showed industrial output in the longest losing streak since 2021 and investment falling more than expected, with the official economic growth goal of 5% for this year looking increasingly out of reach.
For more on equity markets:
- Market Leaders Fading Is a Bad Sign for Europe: Taking Stock
- M&A Watch Asia: GLP, Bohai, HSBC, Seven & I, Air Products, VFS
- US Stock Futures Unchanged
You want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistance. To subscribe to a daily list of European analyst rating changes, click here.
--With assistance from Michael Msika and Sagarika Jaisinghani.
©2024 Bloomberg L.P.
