European Stocks Decline as Market Focus Shifts to US Data and NVIDIA Earnings

Deep News11-18

European stocks fell for a third consecutive session as investors awaited key events this week, including the resumption of US economic data releases and NVIDIA's earnings report.

The Stoxx Europe 600 index closed 0.5% lower. The energy sector showed relative resilience, while retail stocks underperformed.

Morgan Stanley strategists raised their 2026 year-end target for the MSCI Europe Index on Monday. "Despite ongoing fiscal challenges within the region, we expect EU equities to benefit from a broadening US economic recovery," wrote a team led by Marina Zavolock.

This week, investors will focus on US economic data as government agencies resume publishing critical indicators after a weeks-long shutdown-related delay. On Wednesday, NVIDIA's earnings report will test the high valuations in the AI sector.

"The market will closely scrutinize NVIDIA's earnings figures, but more important will be the company's outlook, given recent concerns about the sector," said Guillermo Hernandez Sampere, trading head at asset manager MPPM.

The European benchmark index, which hit a record high last week, is now under pressure due to concerns over tech stock valuations and the potential for a hawkish shift by the Federal Reserve.

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