Major European markets closed lower on Monday after a lackluster session as investors stayed cautious, choosing to wait for the Federal Reserve\'s monetary policy announcement, due on Wednesday, for clarity about the timing of interest rate cuts.
Investors also digested the latest batch of economic data from the region.
The pan European Stoxx 600 ended down 0.17%. The U.K.\'s FTSE 100 and Germany\'s DAX edged down 0.06% and 0.02%, respectively, while France\'s CAC 40 ended down by 0.2%. Switzerland\'s SMI settled lower by 0.45%.
Among other markets in Europe, Belgium, Russia, Sweden and Turkiye closed weak.
Austria, Denmark, Greece, Ireland, Netherlands, Norway and Portugal ended higher, while Iceland, Poland and Spain closed flat.
In the UK market, Phoenix Holdings, BT, Vodafone, United Utilities, Centrica, St. James\'s Place, Severn Trent and Haleon lost 2 to 4%.
Schrodders, Berkeley Holdings, Associated British Foods, Anglo American Plc, Fresnillo, Compass Group, Diageo, Howden Joinery and Endeavour Mining also ended notably lower.
Beazley declined nearly 3%. British American Tobacco gained about 2.5% after the company started a £1.6 billion ($2 billion) buyback program after selling part of its stake in India\'s ITC.
Hikma Pharmaceuticals, SSE, Reckitt Benckiser, Unite Group, Land Securities, Legal & General, Scottish Mortgage and Imperial Brands gained 1 to 2.5%.
British Land Company shares climbed higher after the company announced the formation of a new 50:50 joint venture with Royal London Asset Management Property to boost the delivery of 1 Triton Square into a best-in-class science and innovation building at Regent\'s Place.
In the German market, Adidas, Puma, Deutsche Post, Sartorius, Deutsche Bank, E.ON and Henkel lsot 1 to 2.5%.
Vonovia rallied nearly 3.5% and Porsche gained about 3.25%. Siemens Energy climbed nearly 3%. Zalando, Volkswagen, Covestro, Qiagen and Symrise also closed with strong gains.
In Paris, Teleperformance, WorldLine, Pernod Ricard, Essilor and Publicis Groupe lost 1 to 2.5%.
Alstom surged more than 6%. Thales, Unibail Rodamco, Bouygues, Dassault Systemes, Credit Agricole, Renault, Orange and ArcelorMittal also ended on firm note.
On the economic front, final data from Eurostat showed Eurozone inflation softened as estimated in February largely reflecting the decline in energy prices.
The harmonized index of consumer prices, or HICP posted an annual increase of 2.6% after rising 2.8% in January. The rate matched the flash estimate published on March 1.
Core inflation that excludes energy, food, alcohol and tobacco slowed to 3.1%, as estimated, from 3.3% a month ago. On a monthly basis, the HICP gained 0.6% in February, in line with the initial estimate.
The European Central Bank Staff projected overall inflation to average 2.3% this year, 2% in 2025 and 1.9% in 2026.
The euro area trade surplus increased in January as exports increased amid falling imports, Eurostat reported. The trade surplus rose to a seasonally adjusted surplus of EUR 28.1 billion in January from EUR 14.3 billion in December.
Exports increased 2.1% on month, while imports decreased 4% in January.
UK house prices increased at a faster pace in December as the market continued its recovery after a muted 2023, the property website Rightmove said.
The average asking price grew 1.5% on a monthly basis in March, following a 0.9% rise in February. The rate was also higher than the historic average March increase of 1% and was also the strongest in ten months. On a yearly basis, house price growth advanced to 0.8% from 0.1% in February.