European Stocks Slip as Industrial Declines Offset Gains

European shares fell as Airbus and defence stocks led declines within the industrial sector. Airbus faced a quality issue with A320 jets, while U.S.-Ukrainian talks aimed at peace also impacted defence stocks. Investors anticipate Jerome Powell’s speech for monetary policy insights.

European markets saw a downturn on Monday with defence and Airbus-led industrial stocks applying pressure on the primary index. The STOXX 600 registered a 0.2% drop, marking a cautious start to December after a streak of November gains.

Airbus faced a 5.7% share decline due to a quality concern involving A320 aircraft metal panels, triggering a collective drop in the industrial sector by 1.2%. Defence stocks also suffered as peace discussions progressed between U.S. and Ukraine officials.

Investors keenly await U.S. Federal Reserve Chair Jerome Powell's speech, searching for clues on future monetary policy. Meanwhile, other sectors displayed varying performances with luxury stocks up by 1.2%, reflecting an optimistic outlook through 2026.

(With inputs from agencies.)