European markets closed lower on Monday as traders digested the U.S. debt ceiling agreement and euro zone inflation data.
European markets
The pan-European Stoxx 600 index closed 0.5% lower after muted trading through most of the session.
Oil and gas stocks ended the session 0.27% lower, slipping from gains of 1.1% earlier in the session despite oil prices remaining in positive territory. Saudi Arabia announced voluntary cuts to its output Sunday, starting in July. OPEC+ on Sunday announced it would make no changes to its planned oil production cuts for the rest of the year.
Travel and leisure stocks led sector losses, down by 1.3%, as airline group Air France KLM fell 3.3%.
The Stoxx 600 closed 1.5% higher last week, pulling back from a two-month low Wednesday after U.S. lawmakers passed a bill to raise the debt ceiling and cap government spending.
In Europe, traders are still analyzing the impact of Thursday's inflation data, which showed euro zone inflation falling to its lowest level since February 2022. European Central Bank President Christine Lagarde said the 6.1% figure was still "too high" and suggested, along with other ECB officials, that the central bank's hiking cycle would have to continue.
Asia-Pacific markets were largely higher on the U.S. debt ceiling news, while U.S. equity futures were little changed.