06.07.202616:12:47UTC+00European Stocks Inch Down from Records

European stock indexes pulled back from record highs on Monday, pressured by declines in consumer staples and major pharmaceutical companies. The Euro STOXX 50 slipped 0.2% to 6,398, while the STOXX Europe 600 lost 0.4% to close at 650.

Among consumer defensive names, Anheuser-Busch InBev fell 4% and L'Oréal dropped more than 1%. In the discretionary sector, Inditex declined over 2%, and both LVMH and Hermès retreated by around 1% in a weak session for luxury and non-essential goods.

In fixed income, sovereign bond yields across the Eurozone moved higher and the yield curve steepened, as markets priced in a more hawkish European Central Bank stance, despite recent signs that inflation in the currency bloc may have peaked.

By contrast, banks finished the session higher, with Deutsche Bank, ING, and Intesa Sanpaolo each gaining more than 1%. Defense stocks also outperformed, with Rheinmetall advancing 3.5% on a strong day for the sector.