European stocks decline under pressure from real estate stocks

European stocks fell on Monday, pressured by a decline in real estate stocks, at a time when sentiment was affected after senior officials in the European Central Bank reduced the possibility of cutting interest rates soon.

The European STOXX 600 index fell 0.3 percent by 0811 GMT, after recording its fifth consecutive weekly gain on Friday in the longest series of gains since April.

Real estate stocks fell 0.9 percent, while communications sector stocks increased 0.3 percent, supported by a 4.3 percent rise in Vodafone shares after a proposal from Eliad to merge their businesses in Italy.

Meanwhile, Reuters reported that ECB policymakers were keen to keep the high interest rate message out longer into March, making it unlikely any cut decisions would be made before June.

Over the course of the week, investors will await consumer prices in the euro zone for November, as well as the Bank of Japan’s decision, and the November reading of the personal consumption spending index, which represents the Federal Reserve’s preferred inflation measure.