European stocks retreated on Monday, with the STOXX 600 index falling 0.5%. This could mark the index's biggest one-day decline in a month, reflecting cautious investor sentiment ahead of a crucial U.S. inflation report.
Technology stocks spearheaded the losses, with BE Semiconductor Industries experiencing a steep decline. Concerns regarding potential delays in the adoption of hybrid bonding technology dampened investor confidence in the sector.
The basic materials sector also witnessed a 1.6% dip as investors opted to lock in profits before the release of key economic data from the U.S. on Tuesday.
This data, encompassing U.S. February inflation figures and euro zone January industrial production figures, is expected to shed light on potential central bank interest rate adjustments. The recent robust U.S. jobs report fueled expectations of higher inflation, prompting European investors to adopt a more cautious approach.
Individual company updates included positive full-year results from LEG Immobilien, which saw its share price rise. Conversely, A2A's shares fell following their $1.3 billion acquisition of electricity distribution networks from Enel. Telecom Italia shares also dipped after announcing an anticipated increase in pro-forma net debt.
In Portugal, the PSI index experienced a slight decline despite the center-right Democratic Alliance securing victory in the general election. Uncertainty surrounding governance prospects remains