Markets Shaken by Rate Hike Speculations and Geopolitical Tensions

European stock markets experienced a downturn as Japanese central bank comments sparked interest rate hike concerns. Meanwhile, traders anticipated U.S. rate cuts and geopolitical talks involving Russia and Ukraine were monitored. This volatility influenced global markets with fluctuations in stocks, bitcoin, and currencies.

European stock markets faced declines on Monday as Japanese central bank comments stirred anticipation of potential interest rate hikes. This development led to market nervousness across Europe, despite recent gains.

The STOXX 600 index fell 0.3%, while Germany's DAX saw a 0.9% dip. Defense stocks contributed to these declines. Global anxiety also affected currencies, with the yen and Japanese bond yields rising after Bank of Japan Governor Kazuo Ueda hinted at rate hikes.

Furthering the day's volatility, geopolitical dialogues between the U.S. and Ukraine, ongoing economic data releases, and tensions influencing energy markets impacted investor sentiment worldwide.

(With inputs from agencies.)