European stocks retreat as most subsectors decline

European stocks started the week on a down note on Monday, a week of economic data and monetary policy decisions that prompted investors to be cautious ahead of an expected easing cycle from the Federal Reserve (the US central bank).

The pan-European Stoxx 600 index fell 0.3%, with all major European markets in the red and most subsectors on the index falling.

All eyes are on the US central bank ahead of its monetary policy decision on Wednesday, with financial markets expecting a 50 basis point cut in interest rates at a 60% probability, and the US central bank to cut interest rates by 120 basis points overall this year.

Investors are also awaiting today’s release of Italian consumer price data for August and the euro zone’s total trade balance data for July to assess the strength of the region’s economy.