European Market Faces Turbulence Post-November Gains

European shares saw a downturn on Monday, as November's gains faltered due to risk aversion in the market. Industrial stocks, notably defence and Airbus shares, were significant contributors to the decline. Traders are watching upcoming economic data and holiday spending indicators for fresh catalysts.

European shares turned bearish on Monday, interrupting a strong run in November as risk aversion spread across markets. Industrials, particularly defence stocks and planemaker Airbus, played a heavy role in dragging down indices.

The pan-European STOXX 600 index fell 0.4% to 573.88 points by 0804 GMT, with major regional bourses like Germany and France each slipping 0.5%. The retreat follows a robust November easing of concerns surrounding the AI bubble, prompting traders to seek fresh market catalysts.

Attention is now shifting to this week's economic data releases and early indicators of holiday spending from events such as Black Friday and Cyber Monday. Airbus saw its shares drop 2.1% following a massive recall of over 6,000 jets due to software issues. Defence stocks also plummeted, including Hensoldt, Rheinmetall, and Leonardo, each falling more than 3%, contributing to a 2.3% decrease in the broader defence index.

(With inputs from agencies.)