European stocks fell into the red on Monday as investors awaited key interest rate decisions this week and kept an eye on rising crude oil prices.
The pan-European Stoxx 600 index fell 1.13% to 456.72, with all major regional exchanges lower. Investors will focus on rate decisions in the US on Wednesday and the UK the following day.
Meanwhile, forward-dated Brent crude oil added 0.68% to $94.61 per barrel on the ICE.
“Everyone is worried about oil prices and what that means for inflation numbers by the end of the year,” said Chris Beauchamp, chief market analyst at IG.
“While the recent resurgence in U.S. price growth is unlikely to lead the Fed to raise rates on Wednesday, another hike before the end of the year seems more plausible.”
Investors were also keeping an eye on the latest developments in China’s troubled property market.
“The detention of [Chinese real estate developer] “Evergrande employees, working in wealth management, caused a sharp drop in the real estate giant’s share price amid nervousness over the discovery of new vulnerabilities,” said analyst Susannah Streeter. at Hargreaves Lansdown.
“Authorities are increasingly going after the company’s inner workings, as concerns grow that the sector’s woes could cause pockets of financial instability elsewhere, requiring further repairs, which could further dampen Economic Growth.”
Separately, shares in Martin Sorrell’s digital advertising agency S4 Capital fell by almost a quarter as the company issued a profit warning for the second time in just over a month.
Shares of Nordic Semiconductor fell 10% after a report that Taiwan Semiconductor Manufacturing, the world’s largest contract chipmaker, had asked its suppliers to delay deliveries due to concerns about slowdown in demand.
Mondi shares rose 3% as the paper and packaging company agreed a €775 million deal to complete its exit from Russia.