Pranav Kashyap
(Reuters) – European stocks were flat on Monday ahead of a string of key economic data throughout the week, but technology shares pared gains.
The European stock index was flat at 518.22 as of 0830 GMT. The index hit its highest level in more than three weeks on Friday, marking its third straight week of gains.
The technology sector was the biggest drag on the index, dropping 0.3%, as attention shifted to AI giant Nvidia's (NASDAQ:) second-quarter results, due to be released on Wednesday.
Nearly all local stock exchanges were trading in the red.
Surveys showed German benchmark stocks fell 0.3 percent, the biggest drop among major stock indexes, as business morale in Europe's largest economy tumbled in August. Detailed GDP data for the country is due to be released on Tuesday.
Swiss non-farm payrolls increased by 1.3% in the second quarter. The Swiss index rose 0.1%.
The London market is closed for a public holiday.
This week's forecasts include euro area industrial and economic data, preliminary consumer price inflation in Spain, German retail sales and a preliminary consumer price index.
Flash inflation figures for the EU, flash consumer price indexes for France and Italy, German employment data and US personal consumption expenditures data are due for release on Friday.
Speaking at the Federal Reserve's annual economic symposium in Jackson Hole, ECB chief economist Philip Lane said the European Central Bank was making “good progress” in its efforts to bring inflation down to its 2% target, but that success was still far from assured and tighter policy was still needed.
The cautious stance from European policymakers contrasted with comments from Federal Reserve Chairman Jerome Powell, who hinted at a rate cut possible in September.
“Europe is the canary in the coal mine for rate cuts as there is tension between the ECB's stance and economic weakness,” said Ben Laidler, head of equity strategy at Bradesco BBI.
“Friday's European inflation data will be important as markets are pricing in a much looser ECB policy than the Fed, which is pushing European stocks down a bit.”
The ECB meets on September 12th to decide on borrowing costs, and markets are fully pricing in a 25 basis point rate cut.
Losses in the STOXX 600 were capped by interest-sensitive real estate stocks, which were the top performer among sectors, rising 0.6%.
Among individual stocks, Telecom Italia (BIT:) rose 3% after reports that Italian banker Claudio Costamagna is planning to assemble a group of investors who may be interested in buying a stake in French telecoms group Vivendi (OTC:).
