FX.co ★ European Shares Retreat As Investors Eye Powell's Speech

European stocks experienced a downward trend on Monday amid escalating concerns over the Middle East and anticipation of comments from ECB President Christine Lagarde and Federal Reserve Chair Jerome Powell regarding future interest rate movements.

Despite the anticipation that the European Central Bank (ECB) might expedite its interest rate reductions, government bond yields saw a slight increase.

Preliminary data indicated a decrease in inflation across several key German states in September, ahead of comprehensive national data expected later today. Meanwhile, official reports revealed that the U.K. economy grew slower than initially estimated in the second quarter, affected by weaker performances in the industrial and construction sectors.

The U.K.'s gross domestic product (GDP) rose by 0.5 percent from the previous quarter, revised down from an initial estimate of 0.6 percent, according to the Office for National Statistics.

The pan-European STOXX 600 index dropped by 0.8 percent to 523.86, after having risen by half a percent to a record high on Friday.

Germany's DAX index declined by 0.6 percent, France's CAC 40 fell by 1.6 percent, and the U.K.'s FTSE 100 decreased by 0.4 percent.

Shares of Rightmove fell nearly 3 percent following the rejection of a £6.2 billion takeover offer by Rupert Murdoch's Australian property group.

Energy giants BP Plc and Shell saw moderate gains, attributed to rising oil prices driven by fears of escalating conflicts in the Middle East.

Private equity and venture capital firm 3i Group dropped 2.4 percent after reports emerged that short-seller Shadowfall Capital had taken a multimillion-pound short position against the company.

German automaker Volkswagen saw its shares tumble by 3 percent after it downgraded its 2024 outlook.

French-Italian carmaker Stellantis N.V. experienced a significant decline, plummeting 13 percent, after issuing a reduction in its annual guidance.