European Shares Slide Amid Industrial Woes and Profit-Taking

European shares declined on Monday, affected by the industrial sector and Airbus issues, alongside profit-taking from investors. Defence stocks also saw significant losses, affecting the STOXX 600 and German DAX. Markets focus on upcoming economic releases and holiday spending after positive gains in November.

European shares experienced a downturn on Monday, with the industrial sector particularly impacted due to concerns involving Airbus. The planemaker's shares dropped 3.3% following software-related recalls and repairs affecting half of its global fleet, contributing to the sector's 1.1% decline.

Defence stocks like Hensoldt and Rheinmetall suffered, exacerbating a 2.5% decrease in the broader defence index and pulling Germany's DAX down by 0.7%. Simultaneously, investors opted to book profits after the STOXX 600 saw a robust November, buoyed by prospect of U.S. interest rate cuts and Russia-Ukraine peace talks.

Attention now turns to economic indicators and holiday spending trends post-Black Friday, while markets await Fed Chair Jerome Powell's insights on monetary policy in December. Meanwhile, basic resources gained, supported by rising gold and silver prices, offering some relief amid market fluctuations.

(With inputs from agencies.)