European stocks open lower ahead of action-packed week; Fed in focus By Reuters

(Reuters) – European shares started the data-packed week on a lower note as traders maintained a cautious stance ahead of a long-awaited cycle of monetary easing by the U.S. Federal Reserve, with many leaning towards a cut more than expected.

The pan-European index was down 0.3 percent as of 0710 GMT on Monday, with all major European markets down and most sub-indexes trading in the red.

All eyes will be on the US central bank for its interest rate decision on Wednesday, where money markets currently see a 60% chance of a 50 basis point rate cut and a total easing of 120 basis points in 2024.

For the day, investors will monitor Italy’s consumer price data for August at 0800 GMT and the eurozone’s total trade balance for July at 0900 GMT to gauge the health of the region’s economy.

France’s Rexel rose 12.6 percent after the Paris-listed group rejected a roughly $9.4 billion takeover bid from QXO led by billionaire Brad Jacobs on Sunday.

Nestle shares weighed on the benchmark with a nearly 1 percent drop after Morgan Stanley downgraded the stock to “underweight” and cut its price target.