European stocks end mostly lower as central bank suspense weighs

European stock exchanges closed mostly lower on Monday, except Italy, as investors remained cautious over the course of US-Iran talks and ahead of major central bank meetings this week.

The benchmark Stoxx Europe 600 index fell 0.30% to close at 608.84 points.

France’s CAC 40 lost 0.19% to 8,141.92, the UK’s FTSE 100 declined 0.56% to 10,321.09, and Germany’s DAX 40 dropped 0.19% to 24,083.53.

Italy’s FTSE MIB 30 index, however, diverged positively, rising 0.04% to end the day at 47,673.91.

The euro/dollar parity was trading at 1.173 as of 1650GMT, up 0.09%.

A pause in peace talks between the US and Iran was the main factor weighing on European indices at the start of the week.

With no official diplomatic signals from Washington or Tehran, the price of Brent crude futures rose 3.1% to $108.65 per barrel.

Analysts said investors were still holding on to hopes that the war in Iran could end swiftly, while also focusing on this week’s meetings of the US Federal Reserve, the European Central Bank and the Bank of England.

They expect central banks to keep current interest rates unchanged, while leaving the door open to possible hikes later this year.