European Markets Slip as Powell’s Rate Cut Signals and Corporate News Drive Sentiment

Market Overview
European equities opened lower on Monday, with investors weighing economic signals from the U.S. Federal Reserve and a busy week of earnings and inflation data. The STOXX 600 slipped 0.3% at the start of trading, while Germany’s DAX and France’s CAC 40 both fell around 0.5%. U.K. markets were closed for a public holiday, keeping trading volumes lighter.

Powell’s Policy Signals
The cautious mood followed Fed Chair Jerome Powell’s comments at Jackson Hole, where he suggested that interest rate cuts may be warranted soon due to rising risks in the U.S. labor market. While this boosted expectations of a September cut, traders remain uncertain about the scale and pace of Fed easing.

Corporate Movers

• Oersted AS (CSE:ORSTED) plunged about 16% after U.S. regulators issued a stop-work order on its nearly completed Revolution Wind project off Rhode Island. The Danish windfarm developer reaffirmed its 2025 guidance, announced a state-backed rights issue, and said it was evaluating ways to resolve the issue quickly.
• JDE Peet’s shares surged as much as 17% after U.S. beverage giant Keurig Dr Pepper (NASDAQ:KDP) confirmed a €15.7 billion ($18.4 billion) takeover of the Dutch coffee company, one of the largest deals in Europe this year.

Week Ahead
This week kicks off quietly on the economic front but builds toward key inflation releases from France, Germany, Italy, and other eurozone economies on Friday. These data points will be closely watched as investors assess whether the European Central Bank will mirror the Fed’s dovish tilt.

On the earnings side, Nvidia’s (NASDAQ:NVDA) results, due Wednesday after U.S. markets close, are seen as the key risk event for global equities given the company’s central role in the ongoing AI-driven market rally.