European shares subdued after strong week; Ryanair hits 1-month high
By Ankika Biswas
(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
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