(Reuters) – Major European stock markets were directionless in early trading on Monday ahead of the release of euro zone PMI business activity indices, with hopes of another major rate cut by the U.S. Federal Reserve supporting sentiment.

In Paris, the CAC 40 lost 0.25% to 7,481.70 points at around 07:14 GMT. In Frankfurt, the Dax advanced by 0.04% and in London, the FTSE 100 lost 0.01%.

The EuroStoxx 50 index is down 0.10%, the FTSEurofirst 300 is up 0.02% and the Stoxx 600 is down 0.04%.

Stock markets are hesitating as they await a new series of economic indicators, starting with the Eurozone composite PMIs, which should provide an overview of the state of the European economy.

“If the manufacturing sector, known to be sensitive to the global cycle, remains flat, this is not a good signal. In 2024, the recovery of the eurozone was driven by exports more than by domestic demand. The depressed sentiment of industrialists raises fears that external demand will also moderate,” ODDO BHF analysts report in a note published on Monday.

The Fed’s decision to begin its monetary easing cycle last week also encourages investors to bet on a soft landing for the U.S. economy, as they await good news on the price front, with the publication on Friday of the personal consumption expenditures (PCE) index, the Fed’s preferred inflation gauge.

In stocks, Commerzbank fell 4.3% after the German government said it would retain its 12% stake in the group for now, which should slow down any imminent merger with Italy’s UniCredit.

Rightmove is up 4.2% after Australian property listings company REA Group announced an improved takeover offer on Monday after two previous attempts were rejected.

(Written by Diana Mandiá, edited by Augustin Turpin)

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