

Market Analysis
European shares fluctuated on Monday following their strongest weekly gain in three months, as investors prepared for a week rich with economic data, with a particular focus on U.S. Federal Reserve Chair Jerome Powell's upcoming speech at Jackson Hole, which may provide hints on potential interest rate cuts.
The pan-European STOXX 600 index fluctuated between -0.1% and 0.1% during the morning session, last inching up by 0.1% to 512.05 points.
Defense stocks declined, with companies like Rheinmetall, BAE Systems, Saab AB, Thales, Leonardo, and Dassault Aviation seeing losses between 1.6% and 6% after reports surfaced that Berlin may limit military aid to Ukraine due to budget constraints.
The industrial goods and services sector, which includes most defense companies, saw a 0.2% decline.
In contrast, basic resources led the gains, rising 1.3% as copper prices increased by 1.1% amid fading concerns of a U.S. recession.
The STOXX 600 has rebounded from a recent sell-off, returning to the 511 level, last observed on August 1.
"The consolidation phase will likely continue for the next few days. We're at a point where indecision might creep back in. It's time to reassess the situation and consider how these factors could influence the market," said Daniela Hathorn, senior market analyst at Capital.com.
After a data-heavy week that pushed the STOXX 600 to its best performance in three months, investors are now bracing for another week filled with significant economic releases.
Markets are awaiting flash Purchasing Managers' Index (PMI) data from France, Germany, Britain, and the Eurozone, along with U.S. PMI figures and initial jobless claims data expected later in the week.
However, the central focus this week is on the global central bank meeting in Jackson Hole, Wyoming, where Powell is set to speak on Friday, potentially offering insights into the Fed's monetary policy direction.
"Jackson Hole could be very influential and is likely to set the tone for traders," Hathorn added. "Any insights into the future direction of monetary policy will impact U.S. assets and have a spillover effect on European equities."
Markets have already fully priced in a quarter-point rate cut by the Fed at its upcoming meeting in less than a month, according to LSEG's Fedwatch tool.
In other news, Nexans fell 3.3% after Goldman Sachs downgraded the French power cable supplier's stock rating from "Buy" to "Neutral."
Paraphrasing text from "Reuters" all rights reserved by the original author.