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Market & Economic Intelligence Platform Insight on Macro, Commodities, Equities & Policy

25 August 2025 23:34  |

European Stocks Pull Back

European stocks closed lower on Monday, paring the gains from the previous week as markets continued to assess the outlook on global rates and the latest corporate news.

The STOXX 50 dropped 0.8% to 5,444 and the pan-European STOXX 600 fell a softer 0.5% to 559. Rate futures indicated that markets pared the magnitude of rate cuts expected by the Fed in the upcoming meetings following the dovish tilt on Friday, when Chairman Powell opted to signal that a greater risk of labor softening warranted expansionary policy.

The heavyweight banking sector booked sharp declines with BBVA and BNP Paribas losing 2% and 3.5%, respectively, while UniCredit lost 0.4% after converting its synthetic position on Commerzbank to actual shares. n the meantime, JDE Peet's surged 17.5% after being acquired by Keurig Dr Pepper by €15.7 billion. Lastly, Puma surged 16% on reports that Kering's Pinault family is seeking to acquire the firm.

Source: Trading EConomi

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