(Reuters) – European shares were lacklustre on Monday after the benchmark index posted its biggest weekly jump since March, with the real estate sector losing steam, while Ryanair hit a one-month high following a forecast of a record annual profit.
The pan-European STOXX 600 index was little changed around 0923 GMT after jumping more than 3% last week, as investors cheered a string of robust earnings and signs of an end to monetary policy tightening by major central banks.
“While the markets were revising their estimates for when U.S. rates might start to get cut, economic data in the UK and Europe pointed to an even deeper economic malaise,” said Michael Hewson, chief market analyst at CMC Markets (LON:CMCX).
Fresh data showed the downturn in euro zone business activity accelerated last month, suggesting there is a growing chance of a recession in the 20-country currency union.
The euro zone producer prices and retail sales data for September, due throughout the week, will also be scrutinized in the backdrop of waning price pressures.
Real estate stocks lost 1.1%, after emerging as the top sector performer last week.
Meanwhile, Ryanair soared 6.8% after Europe’s largest airline by passenger numbers forecast a record annual profit and promised a regular dividend pay, lifting the travel and leisure sector index up 1%.
Telecom Italia (BIT:TLIT) (TIM) jumped as much as 5%, before turning negative, after the phone company’s board approved the sale of its fixed-line network to U.S. private equity firm KKR, sparking dissent from its leading shareholder Vivendi (OTC:VIVHY).
Melrose Industries rose 4%, after the British aerospace supplier said its unit GKN (LON:GKN) Aerospace Engines business signed an agreement with GE Aerospace, expanding long-term partnership.
Italy’s biggest bank Intesa Sanpaolo (OTC:ISNPY) advanced 1.4% after lifting its 2023 profit goal and pledged to increase rewards for shareholders, barring a deep recession.
Evotec dropped 6.1% to the bottom of the STOXX 600 after RBC downgraded the German biotech firm’s stock to “sector perform” from “outperform”.
PostNL lost 11% after the Dutch postal company posted third-quarter results below expectations.
Investors will also keep an eye out for Italy’s credit rating review by Fitch Ratings on Friday.
