FX.co ★ European Stocks Pull Back

European stocks concluded Monday's trading session with a downward trend, retracting gains from the previous week. Investors remained focused on the global interest rate outlook and the latest corporate developments. The STOXX 50 index decreased by 0.8% to 5,444, and the broader STOXX 600 index saw a modest decline of 0.5% to 559. Interest rate futures showed reduced expectations for rate cuts by the Federal Reserve in the forthcoming meetings, a shift following Friday's dovish tone from Chairman Powell. He highlighted the higher risk of labor market softening, suggesting a need for expansionary policy. The banking sector experienced notable losses, with BBVA and BNP Paribas dropping 2% and 3.5%, respectively. UniCredit also fell by 0.4% after transitioning its synthetic position in Commerzbank to actual shares. In contrast, JDE Peet's surged by 17.5% following its acquisition by Keurig Dr Pepper for €15.7 billion. Additionally, Puma shares rose by 16% amid speculation that Kering's Pinault family might be interested in acquiring the company.