European stocks are flat after a strong week

European stocks stabilized on Monday after a strong weekly performance that was driven by increased bets on lowering interest rates, while a decline in the health care sector erased gains in energy sector stocks.

There was no significant change in the European STOXX 600 index by 0810 GMT, after it jumped by almost three percent last week. The index is heading towards achieving its first monthly gain since August.

After investors’ expectations increased for a 100 basis point cut in interest rates in 2024 and that the first cut would occur by April, European Central Bank officials dispelled optimism in the market by indicating that inflation is still high and that the economy is fairly strong.

Energy sector shares rose 0.7 percent, while health care sector shares fell 0.6 percent after German pharmaceutical and pesticide company Bayer shares fell 12 percent to the lowest level in 12 years against the backdrop of the cancellation of a large trial in the final stages of a new anti-clotting drug.

The German DAX index fell 0.1 percent.

British equipment rental company Ashtead Group’s shares fell 13.5 percent after the company expected to record annual profits lower than expectations and a depreciation cost exceeding two billion dollars during the year.