European markets were muted on Monday as investors continued to assess inflationary pressures and the possible trajectory of central bank interest rates.
European markets
The pan-European Stoxx 600 provisionally closed flat on the previous session, with oil and gas stocks falling 2.6% to lead losses while food and beverage stocks gained 1.3%.
European markets closed higher on Friday last week as investors continued to assess the trajectory of monetary policy after some tough statements from U.S. Federal Reserve officials.
Global investors have taken some heart from lower-than-expected consumer and wholesale inflation prints recently, prompting bets that the U.S. central bank would have to slow its aggressive interest rate hikes.
However, St. Louis Fed President James Bullard said last Thursday that "the policy rate is not yet in a zone that may be considered sufficiently restrictive" and suggested that the terminal federal funds rate could reach the 5% to 7% range, higher than the market is currently pricing.
Overnight, shares in the Asia-Pacific mostly fell on Monday amid growing Covid concerns in China as its central bank kept the benchmark lending rates, or loan prime rates, on hold.
Meanwhile, U.S. stocks fell in early trading ahead of a Federal Reserve speech and batch of retail earnings to kick off a shortened week in the U.S. ahead of the Thanksgiving holiday.