French stocks lead declines in Europe, business surveys on deck

AI Sentiment: Bearish
Reason: European stock markets, including France's CAC 40 and Germany's DAX, saw declines amid anticipation of key business surveys that could influence the ECB's monetary policy. The fall in share prices of companies like LVMH and Unibail-Rodamco-Westfield also contributed to the bearish sentiment.

European stock markets took a hit as French shares led a broad decline across the continent. The drop came amid anticipation of key business surveys set to release, which could potentially influence the European Central Bank's (ECB) monetary policy. Among the hardest hit were the CAC 40 in France and the DAX in Germany.

The CAC 40 fell by 1.4%, the biggest loss among major European indexes. Meanwhile, the DAX saw a decline of 0.9%. The UK's FTSE 100 also felt the pressure, dropping by 0.4%. Across the pond, the Dow Jones Industrial Average, the S&P 500, and the NASDAQ Composite in the United States all opened lower.

The market is keenly awaiting the release of Purchasing Managers Index (PMI) surveys from around the world. These surveys are seen as a key economic health indicator and can significantly sway market sentiment. In particular, the European PMI data could have a direct impact on the ECB's decision on whether to tighten or loosen its monetary policy.

Investors are on edge as there has been speculation that the ECB might start tightening its policy sooner than expected due to rising inflation. The inflation rate in the Eurozone has already surged above the ECB's target, leading to increased pressure on the central bank to act. However, the ECB has so far been reluctant to make a move, citing the ongoing economic uncertainty caused by the Covid-19 pandemic.

In stock-specific news, shares of LVMH, the world's largest luxury goods company, fell by 2.7%, making it one of the biggest losers in the CAC 40. Unibail-Rodamco-Westfield, the largest commercial real estate company in Europe, also saw its shares drop by 2.5%.

On the other hand, shares of Anglo American, a multinational mining company, surged by 2.8%, making it one of the biggest gainers in the FTSE 100. The company’s stock rose following the announcement of a share buyback program worth $1 billion.

In conclusion, European markets are currently grappling with a decline in share prices ahead of the release of crucial business surveys. These surveys could potentially dictate the future course of the ECB's monetary policy.