FX.co ★ Major European Markets Close Slightly Lower After Lackluster Session

Major European markets ended on a lower note on Monday after a subdued trading session. Investors adopted a cautious stance as they awaited the Federal Reserve's announcement regarding monetary policy scheduled for Wednesday. This announcement is expected to shed light on projected interest rate reductions.

Furthermore, investors mulled over the newest economic data from Europe. The pan-European Stoxx 600 saw a drop of 0.17%. Similar decreases were seen in the indices of the U.K.'s FTSE 100 and Germany's DAX, which fell by 0.06% and 0.02% respectively. France's CAC 40 also witnessed a decline, ending 0.2% lower, while the Swiss SMI dropped by 0.45%.

Other European markets, including those in Belgium, Russia, Sweden, and Turkey, saw a slow-down. On the other hand, markets in Austria, Denmark, Greece, Ireland, the Netherlands, Norway, and Portugal ended on a positive note. The markets in Iceland, Poland, and Spain closed with flat returns.

In the UK market, companies like Phoenix Holdings, BT, Vodafone, United Utilities, Centrica, St. James's Place, Severn Trent, and Haleon experienced losses ranging from 2 to 4%. Other companies, including Schrodders, Berkeley Holdings, Associated British Foods, Anglo American Plc, Fresnillo, Compass Group, Diageo, Howden Joinery, and Endeavour Mining, also recorded noticeable losses.

Beazley shares plunged nearly 3%, while British American Tobacco rose about 2.5%. British American Tobacco's rise came after the company initiated a £1.6 billion ($2 billion) stock buyback program, following the sale of its stake in India's ITC.

Meanwhile, Hikma Pharmaceuticals, SSE, Reckitt Benckiser, Unite Group, Land Securities, Legal & General, Scottish Mortgage, and Imperial Brands saw increases ranging from 1 to 2.5%. Additionally, shares of British Land Company climbed higher following the company's announcement of a new 50:50 joint venture with Royal London Asset Management Property. This partnership aims to transform 1 Triton Square into a leading science and innovation hub at Regent's Place.

Several companies in the German market, including Adidas, Puma, Deutsche Post, Sartorius, Deutsche Bank, E.ON, and Henkel, saw decreases of 1 to 2.5%. In contrast, Vonovia, Porsche, and Siemens Energy saw substantial gains.

In Paris, several firms including Teleperformance, WorldLine, Pernod Ricard, Essilor, and Publicis Groupe saw a drop of 1 to 2.5%. However, Alstom shares surged by more than 6%, and several other companies, including Thales, Unibail Rodamco, Bouygues, Dassault Systemes, Credit Agricole, Renault, Orange, and ArcelorMittal ended on a strong note.

According to final data from Eurostat, Eurozone inflation eased in February, predominantly due to falling energy prices. The harmonized index of consumer prices (HICP) indicated an annual increase of 2.6% in February, down from 2.8% in January.

Additionally, the Eurozone's trade surplus rose in January due to expanding exports and decreasing imports. Eurostat reported a seasonally adjusted surplus of €28.1 billion in January, up from €14.3 billion in December.

Finally, UK house prices ascended at a faster-than-usual pace in December. The property website Rightmove highlighted a monthly increase of 1.5% in March, up from 0.9% in February. This was above the expected March increase of 1%, marking the most significant surge in ten months.