LONDON — European markets were mostly lower on Monday amid an apparent pause in the recent global rally as traders bet on interest rate cuts from major central banks in 2024.
The pan-European Stoxx 600 provisionally closed down 0.1%, with mining stocks shedding 2.4% to lead losses, while energy stocks dropped 1.6%.
Gold prices notched a fresh record high on Monday for a second consecutive day, with spot prices touching $2,100, with analysts citing geopolitical uncertainty, a likely weaker U.S. dollar and possible interest rate cuts as further catalysts for bullion heading into next year.
The prospect of rate cuts, and more imminently another hold from the U.S. Federal Reserve at its next policy meeting in mid-December, sent the S&P 500 to a 2023 high on Friday following a five-week winning streak. Meanwhile, the Dow Jones Industrial Average in November enjoyed its best month since October 2022.
The upward momentum continued despite Fed Chair Jerome Powell's efforts to temper market expectations for incoming rate cuts, as he argued it was "premature to conclude with confidence" that monetary policy was "sufficiently restrictive."
U.S. stocks were lower in early trade on Monday as caution returned.
Shares in Asia-Pacific were also mixed on Monday with investors awaiting a fresh round of economic data on Tuesday, and key inflation readings later in the week.
U.S. stocks open lower, breaking winning streak
U.S. stocks opened lower Monday, retreating from five straight winning weeks for stocks.
The Nasdaq plunged 1% in early deals while the Dow Jones Industrial Average fell 0.25% and the S&P 500 traded down 0.6%.
— Karen Gilchrist
Crypto execs say the bull run is underway and could lead to $100,000 bitcoin in 2024
Executives in the cryptocurrency industry called the start of a new bull run with a growing number of voices calling for fresh all-time highs for bitcoin in 2024 above $100,000.
Bitcoin has rallied more than 120% this year, with many optimistic about the surge continuing into 2024.
"It feels that was a year to get ready for the bull run that is yet to come. But the sentiment is very hopeful for  and 25," Pascal Gauthier, CEO of Ledger, told CNBC last week in an interview.
- Arjun Kharpal
Afternoon biggest movers: Nokia down 6%, UCB up 5%
Nokia shares slipped 6% by mid-afternoon on rumors that AT&T may remove the Finnish mobile network provider from its vendor list. The rumor was seemingly sparked by a LinkedIn post from EJL Wireless Research President Earl Lum.
At the top of the Stoxx 600, Belgian pharmaceutical company UCB climbed more than 5% after the European Commission approved its new Zilbrysq drug for adults with generalized myasthenia gravis, an autoimmune disorder.
- Elliot Smith
Barclays: Markets rallied on rate cut hopes, but 'we don't see it'
Expectations of rate cuts in early 2024 — aided by a dovish shift in tone from the U.S. Federal Reserve, along with promising inflation prints in the U.S. and euro one — have powered a recent global market rally.
But Barclays strategists say they "don't see it" and "remain sceptical that the pace of disinflation can be sustained."
"We caution further falls in inflation will be more difficult from here, especially against still-robust demand and labour-market dynamics in the U.S.," the British lender's FICC Research division said in a note on Monday.
"We still see the first cuts from the ECB in July, the BoE in August and the Fed in December."
- Elliot Smith
European shares nudge lower as miners, energy stocks sink
The pan-European Stoxx 600 was down 0.3% by mid-morning, with mining stocks shedding 2.1% to lead losses while oil and gas stocks dropped 1.8%.
Stocks on the move: Nokia down 5%, UCB up 4%
Nokia shares slipped 5.5% by early afternoon on rumors that AT&T may remove the Finnish mobile network provider from its vendor list. The rumor was seemingly sparked by a LinkedIn post from EJL Wireless Research President Earl Lum.
At the top of the Stoxx 600, Belgian pharmaceutical company UCB climbed more than 4% after the European Commission approved its new Zilbrysq drug for adults with generalized myasthenia gravis, an autoimmune disorder.
- Elliot Smith
A mixed open for Europe
The pan-European Stoxx 600 hovered just below the flatline in early trade, with mining stocks shedding 1.5% to lead loses while retail stocks added 0.8%.
Here are the opening calls
CNBC Pro: Morgan Stanley fund manager names 4 top stocks to buy 'on the cheap’
Stocks have faced a mixed environment this year, according to one portfolio manager — but several should provide good investment opportunities looking ahead following a broadening of the market.
When pressed on what stocks make good plays, Dunn responded with four names, adding: "There's a lot of opportunities out there to pick up really good companies on the cheap."
— Amala Balakrishner
CNBC Pro: Here's where to invest $250,000 for the next 5 years
Major changes have taken place in the economy over the past five years.
A long-standing zero-interest rate regime has given way to rising rates, leading to higher borrowing costs — a situation usually bad for stocks.
But the red-hot inflation that characterized the past couple of years is now cooling, raising several questions for investors: How will this affect stocks and interest rates?
CNBC Pro spoke to financial advisors and investment experts to find out how they would allocate $250,000 over the next five years. They came up with three types of portfolios that cater to investors with different risk appetites.
CNBC Pro subscribers can read more here.
— Weizhen Tan