European shares were little changed on Monday, as investors analysed economic data for clues on the European Central bank’s policy trajectory, while Germany’s DAX index hit a record close, even as populist wins in state elections injected uncertainty.
“ are partly a loud political wake-up call before the parliamentary elections in September next year ... that Germany and France – the European Union’s leading duo – are moving towards growing political instability and weakness should worry the entire EU,” analysts at SEB wrote in a note. However, ECB policymakers are increasingly at odds on the outlook for growth, with some fearing a recession and others focusing on lingering inflation pressures, sources close to the debate said.The rate-sensitive real estate sector was the biggest sector gainer on the STOXX 600, rising 1.8 per cent to its highest since February 2023. Morgan Stanley raised its view of European property firms to “attractive.