European markets closed lower on Monday, bucking a positive trend in Asia-Pacific markets overnight as China relaxed Covid testing rules in some cities and signaled more easing may come.
The pan-European Stoxx 600 ended 0.4% lower, with most sectors in negative territory. Food and beverage stocks shed 1.5% to lead losses, while basic resources gained 0.6%.
Oil prices turned negative by late afternoon trade in Europe as OPEC+ stuck to its policy of lowering oil production and as China relaxed some of its Covid rules.
The alliance of OPEC and non-OPEC producers agreed to stay the course on output policy ahead of the EU’s ban on importing Russian crude that came into force Monday.
U.S. stocks fell Monday on fears that the Federal Reserve may continue tightening until it steers the economy into a recession.
European markets closed lower Friday, influenced by a decline in U.S. markets as investors digested the latest U.S. jobs data that showed payrolls rose by 263,000 in November, a bigger gain than expected.
It was the final monthly employment report before the Fed’s two-day meeting on Dec. 13-14, in which the central bank is expected to slow to a 50 basis point interest rate hike from the 75 basis point hikes seen in recent months.