European stocks decline ahead of economic data release

European stocks began trading on Monday with a decline after dollar-denominated commodities lost their appeal in the face of the rise in the US currency, while investors awaited key inflation data expected to be released this week in the euro zone and the United States.

The European STOXX 600 index fell 0.2 percent by 0823 GMT after the broader European market closed at a record high level on Friday.

According to Reuters, the basic resources sub-index led the losses, falling 1.4%, followed by shares of oil and gas companies, which fell 0.8% due to the decline in the prices of most metals and crude oil after the rise of the dollar against the backdrop of market expectations that a rise in the inflation rate more than expected may lead to a delay in lowering interest rates.

This week, investors are awaiting the release of data on the consumer confidence index, business activity, and consumer prices in the euro zone during the month of February.

Across the Atlantic, investors will be watching January’s Core Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure, as well as February’s factory production data.