European Stock Market News - European Shares Fell

European shares slip as easing expectations fade

Europe stock exchange website Binary Options Trading Platform 

European shares fell in early trading on Monday as euphoria about the prospect of further central bank policy easing faded, with investors warning against over-confidence ahead of another week of interest rate decisions.

Comments on Monday from a key economic adviser to Prime Minister Shinzo Abe, who said the Bank of Japan did not need to boost its monetary stimulus as early as this week, have tempered expectations that Friday's policy review will see new action.

The monthly Ifo survey of German business morale dipped in October but beat forecasts, suggesting Europe's largest economy remains resilient in the face of a slowdown in emerging markets and the emissions scandal at carmaker Volkswagen (VOWG_p.DE).

Corporate expectations over a half-year horizon hit a seven-month high, suggesting many firms believe they can cope with the economic headwinds.

Bets that Japan's already massive stimulus would be increased had risen after China's cut interest rates last week and the European Central Bank indicated it may add to its asset purchase program in December. 

The U.S. Federal Reserve, which also meets this week, is also increasingly seen delaying its first rate increase for nearly a decade until next year.

Global equities, which have rebounded 10 percent from the depths of September's sell-off, were broadly flat on Monday, with the pan-European FTSEurofirst 300 .FTEU3 index down 0.3 percent. MSCI's index of Asia-Pacific shares outside Japan edging up 0.1 percent.

Poland's benchmark equity index .WIG20 reversed early falls and rose 0.5 percent after the main opposition party Law and Justice won weekend parliamentary elections.

The party confirmed its plan to introduce a banking tax as of January 2016, which hit bank stocks like PKO BP PKO.WA and mBank MBK.WA.