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The
pan-European STOXX 600 edged 0.1% lower, as of 0923 GMT.
Oil and gas shares were the biggest drag, down 1%, mirroring
weak oil prices on rising U.S. crude inventories. [O/R]
A 10.6% tumble in shares of Swedish software firm Fortnox also
weighed on the index.
H&M topped the gains, rising 13.1% after the world's
second-largest listed fashion retailer beat first-quarter
operating profit estimates.
Still, the index is eyeing a second straight quarterly gain,
with a 6.6% gain so far.
Recent dovish signals from major central banks and a rally in
technology stocks powered by the artificial intelligence fervour
have spurred STOXX 600 to record highs.
"This week is likely to be dominated by position squaring as we
enter into a holiday period. The key data for the week is on
Friday, when the market is closed," said Mohit Kumar, chief
economist Europe at Jefferies.
Focus will shift to the euro-zone consumer and economic
sentiment data for March later in the day. The U.S. personal
expenditure consumption data, due on Friday, will be closely
watched for further cues on the Federal Reserve's timing of
interest rate cuts.
"It doesn't matter whether we get the first-rate cut in June or
July, what matters is that central banks, globally, are moving
towards an easing cycle," Kumar added.
Adding to the dovish signals, ECB board member Piero Cipollone
said the European Central Bank is increasingly confident that
inflation will fall back to its 2% target by mid-2025 as wage
growth moderates.
Meanwhile, Sweden's central bank held its key rate unchanged at
4.00% as expected and said that inflation pressures had now
eased enough for the policy rate to be cut in the coming months.
Among other major stocks, Deutsche Bank gained 3.4% and notched
a six-year high after Morgan Stanley upgraded the German lender
to "overweight." The stock propped up Germany's DAX 40 index
0.1%.
DS Smith jumped 7% after the British paper and packaging firm
said it was in talks with International Paper for an all-stock
offer valued at 5.72 billion pounds ($7.22 billion).
European markets will be shut on Friday and Monday for Easter
holidays.
(Reporting by Shristi Achar A in Bengaluru; Editing by Rashmi
Aich and Sriraj Kalluvila)
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