European stocks slipped on Monday, with French stocks taking a hit after the government cut its annual economic growth forecast, while shares of car parts maker Forvia rose following an upbeat outlook and on plans to trim its workforce. The continent-wide STOXX 600 index, opens new tab was down 0.1 per cent, while the euro zone blue-chip STOXX 50E index, opens new tab lost 0.3 per cent by 0948 GMT, reports Reuters.
France's benchmark index, opens new tab lost 0.4 per cent, easing from Friday's record high, after the government trimmed the economy's 2024 gross domestic product growth forecast to 1 per cent from 1.4 per cent, hurt by the ongoing war in Ukraine and Gaza and a slowdown in top trading partners Germany and China.
"The fact that two core economies (France and Germany) in the eurozone are under difficulty is not particularly good news," said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.
"But, with growth outlooks softening, it means that the ECB (European Central Bank) will at some point have to soften its hand to support the economy."
The main STOXX index had notched weekly gains for the past four and closed at a fresh two-year high on Friday, driven by optimism around a robust corporate earnings season and hopes of imminent rate cuts by the ECB.
As borrowing costs remain high, fears of a slowdown in the region's top economies - Germany and France - loom ahead of the former's fourth-quarter GDP figures, due later in the week.
Germany's DAX index, opens new tab also lost 0.3 per cent, not offset by a 3.3 per cent gain in Rheinmetall, opens new tab, as the top artillery producer plans to open an ammunition factory in Ukraine as part of a joint venture.
Juventus, opens new tab fell 2 per cent after the Italian sports club said its net loss widened in the first half.
Forvia, opens new tab climbed 3.2 per cent after the world's seventh-largest automotive supplier forecast better-than-expected 2024 sales and said it would slash 13 per cent of its European workforce over the next five years.
The healthcare sector, opens new tab limited losses on the STOXX with its 0.6 per cent rise, boosted by a 3.5 per cent advance in AstraZeneca, opens new tab after a combination of the pharmaceutical giant's cancer drug Tagrisso with chemotherapy to treat a type of lung cancer was approved by the US Food and Drug Administration.
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