European shares fell on Monday after strong gains last week driven by escalating bets of interest rate cuts, as miners and energy stocks declined tracking weak commodity prices.
The pan-European STOXX 600 was down 0.1% by 0810 GMT, after touching a four-month high on Friday and posting its third straight weekly gain.
Miners fell 1.9% as a stronger U.S. dollar weighed on copper prices, while energy stocks shed 1.4% as oil prices fell amid persistent pressure from the OPEC+ decision and uncertainty over global fuel demand growth.
Remarks from Federal Reserve Chair Jerome Powell on Friday bolstered market expectations that U.S. key policy rates have peaked.
European shares posts best month since Jan
Investors will keep an eye out for a slew of data this week including eurozone’s PMI, producer prices, retail sales and gross domestic product to gauge the outlook for inflation and the economy.
Roche gained 1.7% after agreeing to take over obesity drug developer Carmot Therapeutics for $2.7 billion.
Rolls-Royce jumped 3.7% after J.P. Morgan upgraded the engineering company’s stock to “Overweight” from “Neutral”.
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