European stocks trade lower

European equities slipped on Monday as investors weighed Federal Reserve Chair Jerome Powell’s comments suggesting that U.S. rate cuts could be on the horizon, while also contending with a mixed picture for global growth.

The Stoxx 600 fell 0.2%, with the DAX down 0.4% and the CAC 40 off 0.3%. London markets remained closed for a bank holiday, leaving volumes thinner than usual.

The session was marked by sharp moves in individual stocks. Ørsted tumbled 18%, its steepest drop in years, after U.S. regulators ordered a suspension of one of its flagship offshore wind projects. The decision casts doubt on the company’s funding strategy and has broader implications for Europe’s renewable energy sector, which is already grappling with cost inflation and permitting delays.

On the upside, JDE Peet’s soared as much as 17% after Keurig Dr Pepper agreed to acquire the Dutch coffee group for €15.7 billion, signaling continued consolidation in the global beverages industry and delivering a rare dose of M&A-driven optimism to markets.

Investors are also looking ahead to a heavy macroeconomic calendar, with inflation prints due from Germany, France, Italy, and Spain later in the week. These releases will be closely scrutinized for signals on the European Central Bank’s policy stance, especially as markets continue to debate whether the ECB has room to ease in parallel with a potential Fed pivot.

Meanwhile, corporate earnings remain in focus, with results from Pernod Ricard expected to shed light on consumer demand trends, while Nvidia’s report in the U.S. is set to influence global risk sentiment given its outsized role in AI-driven equity rallies.

Caution lingers after last week’s developments on the U.S.-EU trade agreement, particularly regarding the pharmaceutical sector, which provided some regulatory clarity but left questions about long-term competitiveness. More broadly, sentiment is clouded by uncertainty over the trajectory of global growth and monetary policy, as markets try to reconcile the prospect of looser financial conditions with ongoing signs of demand weakness across major economies.