European stock markets opened lower today as investors prepared for key economic data and a possible interest rate cut by the US Federal Reserve. The STOXX 600 index, a gauge of European stock performance, was down 0.3% by 0710 GMT, with major European markets broadly lower and most sectors trading in negative territory.
Market focus is on the Fed’s much-anticipated decision on Wednesday, with expectations of a large rate cut. Current market expectations are for a 60% chance of a 50 basis point cut, with a cumulative 120 basis point cut expected over 2024.
Investors are also awaiting economic indicators from Europe, including Italian consumer price data for August, due at 0800 GMT, and the euro zone’s total trade balance for July, expected at 0900 GMT. These data are crucial to assessing the region’s economic health.
In corporate news, shares of French electricity distributor Rexel rose 12.6% after the company rejected a takeover offer worth about $9.4 billion from a consortium led by billionaire Brad Jacobs and his company QXO on Sunday.
Meanwhile, Nestle shares fell nearly 1% after Morgan Stanley downgraded the company to underweight and lowered its price target. The revision contributed to downward pressure on the STOXX 600 index.
