European stock indexes

European stock indexes fell from recent record highs on Monday, with Wall Street also expected to face losses. This shift in the market is attributed to an uncertain economic outlook and anticipation for U.S. inflation data set to be released later in the week. U.S. stocks began to decline from record highs on Friday, a move analysts believe was due to profit-taking after mixed U.S. payrolls data, yet expectations for a Federal Reserve rate cut in June remained. Traders are now focused on the upcoming U.S. inflation data, which could influence expectations for when major central banks will start reducing rates. As of 1236 GMT, the MSCI World Equity index was down by 0.3 percent after reaching a new all-time high on Friday. Similarly, the pan-European STOXX 600, which also reached a new all-time high on Friday, was down by 0.5 percent. London’s FTSE 100 and Germany’s DAX experienced declines of 0.5 percent and 0.7 percent, respectively. Amelie Derambure, a senior multi-asset portfolio manager at Amundi, suggested that Monday’s downturn might be due to uncertainty about the economic outlook and high stock valuations. Recent comments from Fed Chair Jerome Powell and European Central Bank policymakers have raised expectations for interest rate cuts starting in the summer, which contributed to pushing stock indexes to new highs.