.jpg)
By Pravanav Kashyap and Lisa Pauline Matakal
(Reuters) – European shares were broadly flat in quiet trade on Monday, with semiconductor stocks leading the technology sector lower as investors looked ahead to a slew of key economic data this week for more clues on the path of monetary policy.
European semiconductor stocks fell as focus shifted to second-quarter results from U.S.-listed artificial intelligence company Nvidia (NASDAQ:NVIDIA), due on Wednesday.
The technology sector was the biggest loser on the European benchmark index, down 1%. ASML Holding (AS:), ASM International (AS:) and Aixtron lost between 1.6% and 2.7%.
Investors are awaiting key economic data this week for further clues on the path of monetary policy from the European Central Bank, which meets on September 12. Traders are widely expecting a 25 basis point rate cut.
The EU preliminary inflation report is due on Friday, the main report of the week. Consumer price data from France, Italy and Spain, as well as industrial and economic sentiment in the eurozone, are also due throughout the week.
The European index settled at 518.05 points at 1600 GMT.
The index has gained in the previous three sessions, and is still trading around its highest level in about a month.
Germany’s benchmark index pared some earlier losses, closing down about 0.1 percent after a survey showed business morale in Europe’s largest economy fell in August.
“The German economy appears to be back where it was a year ago: lagging behind the eurozone in growth with little sign of an imminent improvement,” said Carsten Brzeski, head of global macroeconomics at ING.
German GDP figures, employment data and retail sales will be at the top of the news list throughout the week.
Global markets will also be closely watching U.S. personal consumption spending data on Friday for further clues on the scope of a widely expected interest rate cut by the Federal Reserve in September after Fed Chairman Jerome Powell said “the time has come” to ease monetary policy in a recent speech.
By contrast, European Central Bank chief economist Philip Lane was more cautious, saying tight monetary policy was still needed because success in tackling inflation was not guaranteed. Bank of England Governor Andrew Bailey also said further rate cuts would not be rushed.
The interest-rate-sensitive real estate sector was the best performing sector, rising 1.2%, led by a 4% rise in Vonovia shares.
The oil and gas sector rose 0.7%, as crude prices rose.
Among individual stocks, Telecom Italia Vivendi (PIT:) shares rose 2% on a report that Italian banker Claudio Costamagna is working on a plan to bring together a group of investors interested in buying France’s Vivendi (OTC:) shares in the telecoms group.
Shares of Swiss solar panel maker Meyer Berger plunged 45%, its worst day ever, after the company halted plans to build a factory in Colorado and further delayed its financial results.
London markets were closed for the holiday.
