European shares experienced a downward trend on Monday, driven primarily by setbacks in the technology and healthcare sectors. This decline in global equities followed U.S. jobs data that strengthened predictions of a conservative Federal Reserve approach towards interest rate cuts this year.
The pan-European STOXX 600 index witnessed a 0.5% reduction by 0812 GMT, building on its nearly 1% drop last Friday. This followed the surprising news that U.S. job growth had accelerated in December, resulting in a lowered unemployment rate of 4.1%. Technology stocks mirrored declines seen in Wall Street, falling by 1.6%, accompanied by a 0.9% drop in heavyweight healthcare shares.
In contrast, European energy stocks showed resilience, advancing by 0.9% as crude oil prices climbed by over 1%. Government bond yields in Europe remained high, aligning with their U.S. Treasury counterparts. Investors are now turning their attention to upcoming inflation data from key European economies and a significant U.S. consumer price report.
(With inputs from agencies.)