EUROPEAN STOCKS MIXED ON MONDAY AS MARKETS LOOK TO EARNINGS AND ECB RATE CALL

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  • Europe saw mixed results in equity indexes for the new trading week.
  • Energies climb, but financials stumbled.
  • ECB officials drive rate cut expectations to the forefront.

European equities spread on Monday as markets compare last week’s rate hold from the European Central Bank (ECB) mixes like water and oil with early rate-cut talk from ECB policymakers to spark headlines as the new trading week gets underway. 

Momentum eased in European stocks on Monday after hitting multi-year highs on Friday, leaving investors to reconsider their positioning after banks and financials saw declines despite energy sector indexes marking in slight gains. 

The ECB is firmly at the top of the rate hike cycle, and the central bank’s next move is well-telegraphed as a cut, and now all that’s left is for markets to negotiate the specifics of when the ECB will trim rates. 

ECB’s Centeno: Should start cutting rates sooner rather than later

Money markets are fully priced in on a first 25 basis point rate cut from the ECB by May, with rate swaps expecting 149 basis points in overall rate cuts through the end of the year. 

ECB officials landed on opposite sides of how fast rate cuts should come on Monday, further muddying the waters on rate cut expectations heading into the midyear


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