By Shashwat Chauhan
(Reuters) -European shares were subdued on Monday as losses in automakers offset gains in technology and mining stocks, while investors awaited comments from several Federal Reserve officials later in the day.
The pan-European STOXX 600 was flat at 554 points by 0813 GMT, with Spanish stocks lagging regional bourses, down 0.7%.
Germany’s Porsche slid 6% after the luxury carmaker slashed its 2025 profit outlook as it dialled back plans for its electric vehicle rollout due to weaker demand.
“The re-basing of (Porsche’s) guidance may be the last but leaves the turnaround a drawn-out affair with product cycle and brand challenges,” Jefferies analysts said in a note.
Shares of Porsche-parent Volkswagen, which also cut its 2025 profit outlook, fell 6.3% while the broader European automobile sector lost 2.2%.
Euro zone banks dipped 0.8%, with Spain’s Sabadell down 3.3% after bigger rival BBVA said it raised its bid for the bank by 10% to 3.39 euros per share. BBVA also fell 3.3%.
Helping stem some losses, technology stocks climbed 0.9%, with chipmakers ASML and ASMI advancing 3.2% and 2.1%, respectively.
European miners gained 1.6%, with UK-listed precious metal miner Fresnillo among the top gainers at a 4.1% rise as gold prices surged to an all-time high.
Other top miners including Glencore and Rio Tinto were up 2.7% and 1.9%, respectively.
EYES REMAIN ON THE FED
Investors will watch for remarks from at least five Fed officials later Monday, including New York Fed President John Williams and new Governor Stephen Miran, while Chair Jerome Powell is due to speak Tuesday after last week’s 25-basis-point rate cut.
European shares had closed higher on Thursday with global markets after the Fed move but ended the week slightly lower.
“The Fed can’t get any more dovish. Inflation’s going to rise, and they’re not going to be able to justify cutting much more,” said Neil Wilson, investor content strategist at Saxo.
“European (stocks) can resume leadership later in the year, but maybe not just yet.”
Interest rate decisions in Switzerland and Sweden are expected later this week and a key U.S. inflation reading is also slated for Friday.
Among other stocks, Fugro dropped 7.4% after the Dutch geo-data specialist withdrew its annual forecast, citing “significant changes” in market conditions in recent weeks.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)
