European stock markets closed lower on the first day of the week

European stock markets closed the first business day of the week with a decline.

At the close, the benchmark Stoxx Europe 600 index fell 0.54 percent to 474.19 points.

In France, the CAC 40 index fell 0.74 percent to 7,411.68 points, the DAX index in Germany decreased by 0.49 percent to 16,622.22 points, the FTSE 100 index in the UK fell 0.39 percent to 7,594.91 points, and the FTSE MIB 30 index in Italy closed with a 0.47 percent loss at 30,327.72 points.

While inflation data to be announced across the region this week is being closely monitored in Europe, data released today showed that the seasonally and calendar-adjusted gross domestic product (GDP) of Germany, Europe's largest economy, declined by 0.3 percent last year compared to the previous year.

Ruth Brand, President of the Federal Statistical Office of Germany (Destatis), stated in her assessment of the data that overall economic development in Germany was hampered in 2023, a year marked by numerous crises.

Industrial production in the Eurozone also decreased by 0.3 percent in November last year compared to the previous month.

On the other hand, preliminary inflation data coming in higher than expected across Europe is increasing concerns that price increases remain stubborn and sticky, and that central banks may begin interest rate cuts later than anticipated.

European Central Bank Governing Council member and Bundesbank President Joachim Nagel stated in his remarks today that it is still too early to discuss interest rate cuts, saying, "Inflation is too high. (For interest rate cuts) Maybe we can wait for the summer holidays, I don't want to speculate."

News Source: 12punto