European Markets Steady as Investors Eye Federal Reserve Meeting

European shares saw little movement on Monday with consumer stocks offsetting industrial and healthcare gains. Unilever's drop and L'Oreal's investment were highlighted, while markets wait for the U.S. Federal Reserve's meeting, anticipating a 25 basis point rate cut. Recent market gains were driven by dovish Fed signals.

European shares remained largely unchanged on Monday as the decline in consumer stocks, including Unilever's 3.1% drop, offset the gains in industrial and healthcare shares. This comes as investors hold their breath for the U.S. Federal Reserve's monetary policy meeting scheduled for later this week.

By morning, the pan-European STOXX 600 index had fallen by 0.2%, with major indexes in Germany and France showing slight reductions of 0.1% and 0.3%, respectively. Unilever's drop was significant following the announcement of its Magnum demerger. Meanwhile, L'Oreal saw a dip of 1.6% as it expanded its stake in Galderma.

The apparent caution among investors is fueled by expectations that the U.S. Fed will announce a 25 basis point rate cut. This anticipated move follows recent Fed comments and economic data indicating potential weaknesses, which have boosted market expectations of a rate cut in December.

(With inputs from agencies.)