European stocks halt November gains after statements by central bank officials

European stocks fell for a second session on Tuesday after strong gains in November after the latest comments from European Central Bank policymakers refuted market expectations of interest rate cuts next year.

The European STOXX 600 index fell 0.5 percent, with market heavyweights such as Novo Nordisk and LVMH falling by more than 2 percent.

The index is still on track to achieve its best monthly performance since January, thanks to expectations that major central banks including the Federal Reserve (US Central Bank) and the European Central Bank have finished raising interest rates and could begin monetary easing next year.

But central bank President Christine Lagarde said on Monday that the bank’s battle to control price growth is not over yet.

Investors will focus on a range of economic data this week, including Eurozone inflation numbers and the US Personal Consumption Expenditures Index, the Federal Reserve’s preferred measure of inflation, for clues on the path of monetary policy.