European stock markets closed Monday in the red, with France’s CAC 40 leading the decline due to uncertainty over government budget plans. The country’s Prime Minister, Francois Bayrou, announced he will seek a confidence vote next month.
German and UK markets were also lower, with Germany’s DAX dipping 0.42% and US equities slightly falling soon after trading began. Asian markets rose, however, driven by gains in mainland China and Hong Kong stocks.
Some notable individual stock moves occurred on Monday. Orsted’s shares fell over 16%, while Keurig Dr Pepper’s shares surged as it announced a $18.4 billion acquisition of JDE Peet’s. Puma shares also rose sharply after reports suggested the sportswear company could be up for sale.
Meanwhile, data from Germany showed its business climate improved in August, reaching its highest level in over a year. However, companies assessed the current situation as slightly worse than in July. Federal Reserve Chairman Jerome Powell’s comments on interest rates and US-EU trade agreement details also weighed on markets.
The week ahead is expected to be relatively quiet on the economic data front before a raft of inflation figures are released from France, Germany, Italy, and other key European countries. Investors will also be following earnings reports from Pernod Ricard and Nvidia.
Source: https://www.cnbc.com/2025/08/25/european-stocks-head-for-lower-open-as-uk-markets-remain-closed.html