European shares kick off week lower as healthcare, tech stocks fall

European shares were dragged lower by technology and healthcare stocks on Monday, as global equities faced pressure after U.S. jobs data reinforced bets the Federal Reserve will be cautious in cutting interest rates this year.

The pan-European STOXX 600 was down 0.5% by 0812 GMT, extending its declines following a near 1% drop on Friday when data showed U.S. job growth unexpectedly accelerated in December while the unemployment rate fell to 4.1%.

Technology stocks followed their Wall Street peers lower with a 1.6% decline, while heavyweight health care shed 0.9%.


Heavyweight energy stocks, however, advanced 0.9% as crude oil prices gained more than 1%.

European government bond yields remained elevated, in line with U.S. Treasuries. The yield on the 10-year bund hovered near its highest in over six months.

Later in the week, inflation figures across the continent including from the UK and Germany would be in focus, along with a U.S. consumer prices report.

Entain jumped 8.8% after the British gambling group said it expects core profit for 2024 to be at the top end of its forecast range.