European Shares Dip Amid Economic Data Focus and Auto Sector Weakness

European stocks opened lower on Monday as investors braced for a week filled with key economic data releases from the region, while awaiting remarks from European Central Bank (ECB) President Christine Lagarde.

By 07:10 GMT, the pan-European STOXX 600 index had slipped 0.1% to 527.47 points. Despite this slight dip, the index was on track for a third consecutive monthly gain, marking its longest winning streak in nearly seven months.

Losses were tempered by gains in the oil sector, fueled by rising oil prices due to concerns over the potential escalation of conflict in the Middle East.

Key economic data releases are expected later in the day, with Germany’s preliminary Consumer Price Index (CPI) figures for September due at 12:00 GMT and Italy’s figures scheduled for 09:00 GMT. In the U.K., the FTSE index remained flat after Britain’s GDP figures for the second quarter indicated slower-than-expected economic growth.

ECB President Christine Lagarde is set to address the European Parliament at 13:00 GMT, with investors closely watching for any signals regarding future monetary policy.

Among individual stocks, Volkswagen dropped by 2% after the German automaker cut its 2024 guidance. Similarly, Stellantis NV plunged 8% following a downward revision of its annual guidance, citing a worsening global industry environment. This led to a 2.2% decline in the automobile sector, making it the worst-performing sector of the day.

In other notable movements, British private equity and venture capital firm 3i Group fell 3.5% after reports emerged that Shadowfall Capital had taken a short position on the company.