European shares drop on hawkish ECB signals

European shares fell on Monday, with major regional markets in the red, as investors fretted about hawkish signals from European Central Bank policymakers. The pan-European STOXX 600 fell 0.2% as of 0720 GMT. Oil stocks fell 0.7%. Shares in Fresenius and its dialysis unit Fresenius Medical Care rose 5.2% and 2.1%, respectively, in early trade after the German healthcare group said its long-serving boss, Stephan Sturm, would quit.

European shares fell on Monday, with major regional markets in the red, as investors fretted about hawkish signals from European Central Bank policymakers.

The pan-European STOXX 600 fell 0.2% as of 0720 GMT. Chemicals, autos and tech stocks led declines, while miners inched 0.4% higher. The European Central Bank must keep raising rates even if a recession in Germany is increasingly likely, as inflation will stay uncomfortably high through 2023, Bundesbank President Joachim Nagel told a German newspaper.

Focus is on minutes of the ECB's last policy meeting due this week that are likely to sound hawkish, as well as on euro zone flash PMIs due Tuesday. Russia will halt natural gas supplies to Europe for three days at the end of the month, state energy giant Gazprom said on Friday. Oil stocks fell 0.7%.

Shares in Fresenius and its dialysis unit Fresenius Medical Care rose 5.2% and 2.1%, respectively, in early trade after the German healthcare group said its long-serving boss, Stephan Sturm, would quit.