European Stocks Dip Amid Trade Caution and Fed Decision Anticipation

European stocks edged slightly lower amid heightened investor caution as markets await developments in trade negotiations between the United States and China, alongside the release of major corporate earnings and the upcoming U.S. Federal Reserve meeting scheduled for this period

The Stoxx 600 index slipped by 0.1%, with most major European indices recording modest gains, except for France's CAC 40, which declined by 0.3

U.S. President Donald Trump stated in a televised interview that he would not seek to dismiss Federal Reserve Chairman Jerome Powell, though he described him as "completely rigid," renewing his call for lower interest rates — adding to the market’s anticipation ahead of the Fed's expected decision on Wednesday

Recent modest optimism in the markets has been fueled by hopes of easing trade tensions between the United States and China, with reports of intensive negotiations that could lead to a de-escalation of the trade war. This is also linked to the developments seen in the "India-U.S. trade negotiations" aimed at reaching new trade agreements

Mixed Sector Performance and Merger Concerns

On the corporate side, Shell's shares listed in Amsterdam dropped 2.8% following reports that the oil giant is evaluating a potential takeover bid for rival BP, sparking investor concerns about potential debt burdens

Conversely, shares of Danish pharmaceutical company Novo Nordisk rose 1.1% after receiving approval from the U.S. Food and Drug Administration (FDA) to market an oral version of its weight-loss drug Wegovy, boosting investor confidence in its future revenue streams from the biopharma market

Amid the prevailing cautious sentiment, European markets remain heavily dependent on the outcome of global trade talks and future monetary policy directions, which are expected to significantly shape market trends in the upcoming period