European equity indices slipped slightly lower Monday, starting the new week on a circumspect note ahead of geopolitical events that could impact the region.
At 03:05 ET (07:05 GMT), the DAX index in Germany dropped 0.1%, the CAC 40 in France slipped 0.4% and the FTSE 100 in the U.K. fell 0.3%.
U.K./EU relations, Ukraine peace in spotlight The U.K. and the European Union are set to hold a summit in London on Monday, with British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen likely to announce a new defense and security pact as well as potentially easing mobility in the region as well as cutting red tape to do with trade.
Additionally, U.S. President Donald Trump will be holding a call with Russia’s President Vladimir Putin later Monday, after peace talks held in Turkey last week failed in their absence.
The European leaders, ahead of today’s summit, discussed the need for an unconditional ceasefire in the war on Sunday, and also talked about the use of sanctions if Russia fails to engage seriously in ceasefire and peace talks.
“President Putin must show he wants peace by accepting the 30-day unconditional ceasefire proposed by President Trump and backed by Ukraine and Europe," French President Emmanuel Macron said on X on Sunday.
Final EU CPI release for April due The main economic data release in Europe Monday is the final April consumer price index for the eurozone.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. This is expected to show that consumer inflation rose 0.6% on the month on April, an annual rise of 2.2%, which shouldn’t prevent the European Central Bank from cutting interest rates in June when the governing council next meets.
The European Central Bank has cut interest rates seven times in the past year, as the policy makers attempted to kick start a struggling economy.
Across the pond, a Congressional committee in the U.S. House of Representatives approved President Donald Trump’s sweeping tax bill on Sunday, setting it up for a House vote this week amid resistance from a group of Republicans.
This bill is estimated to add between $3 trillion and $5 trillion to the national debt over a decade, and contributed to Moody’s downgrading the U.S., to ‘Aa1’ from ’AAA’, with the credit rating agency noting that successive U.S. administrations had failed to reverse ballooning deficits and interest costs.
Ryanair offers upbeat forecast Back in Europe, Ryanair (IR:RYA) reported robust demand across Europe and projected that fares would rebound, recovering much of last year’s decline that had dented profits as consumers struggled.
Europe’s largest low-cost airline reported a 16% fall in annual profit for the 12-month period ended March 31, as softer consumer demand and a dispute with online travel agents drove fares down by 7%.
Diageo (LON:DGE), the maker of Johnnie Walker whisky and Guinness beer, reported a 5.9% rise in third-quarter organic sales, and affirmed its full-year forecast.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. That said, the world’s top spirits maker, forecast a $150 million annual hit from the Trump administration’s tariffs, and launched a $500 million cost-savings program.
Crude hands back some recent gains Oil prices traded lower Monday, handing back some of the previous week’s gains as traders digested mixed Chinese economic data.
At 03:05 ET, Brent futures dropped 0.8% to $64.89 a barrel, and U.S. West Texas Intermediate crude futures fell 0.8% to $61.46 a barrel.
China’s industrial production rose more than anticipated in April, with factory activity holding up well despite pressure from heightened U.S. trade tariffs on exports.
However, domestic demand showed signs of weakness, as retail sales for the month came in below expectations.
Traders were also cautious as the global ratings agency Moody’s downgraded its investment grade rating on the U.S.
Both benchmarks gained more than 1% last week, driven by a surge at the start of the week, when the U.S. and China agreed to temporarily lower soaring tariffs placed on each other.
