STOXX 600 flat ahead of economic data releases
written by Bella Palmer
The pan-European STOXX 600 index was flat at 518.05
European shares were broadly flat in quiet trading on Monday, with semiconductor stocks leading the technology sector down as investors looked ahead to key economic data releases this week for more clues on the path of monetary policy.
Stocks of European semiconductor stocks slid as focus turned to second-quarter results from U.S.-listed AI leader Nvidia due Wednesday.
The technology sector was the biggest drag on the European benchmark, dropping 1%. ASML Holding, ASM International, and Aixtron declined between 1.6% and 2.7%.
Investors await key economic data this week for more signals on the policy path for the ECB, which meets on September 12. Traders have broadly priced in a 25 bp rate cut.
The week's key release will be the flash estimate for EU inflation on Friday. Consumer price data for France, Italy and Spain, as well as Eurozone industrial and economic sentiment are due throughout the week.
The pan-European STOXX 600 index was flat at 518.05 at 1600 GMT.
The index has notched gains in the earlier three sessions, still trading around almost a one-month high.
The German benchmark pared some earlier losses, closing down nearly 0.1% after a survey showed business morale for Europe's largest economy declined in August.
The German economy seems to be back where it was a year ago: the growth laggard of the eurozone with little signs of an imminent improvement, according to Carsten Brzeski, Global Head of Macro at ING.
German GDP figures, employment, and retail sales data are due throughout the week.
Global markets will also closely watch U.S. PCE data on Friday for more signals on the scope of a widely anticipated Fed September rate cut after Fed Chair Jerome Powell said "the time has come" to ease policy in a recent speech.
In contrast, European Central Bank chief economist Philip Lane was more cautious, saying restrictive monetary policy is still needed as success in tackling inflation was not assured. BoE head Andrew Bailey also said further interest rate cuts would not be rushed.
Rate-sensitive real estate was the top sectoral performer, adding 1.2% led by an almost 4% jump in Vonovia shares.
The oil and gas sector added 0.7%, as crude prices jumped.
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