Europe open: Shares down in busy data week; Chr Hansen in focus

European shares were lower at the open on Monday after falls on Wall Street on Friday and weak Asian markets overnight ahead of a data dump and interest rate decisions this week.

The pan-regional Stoxx 600 index was down 0.60% at 0830 GMT.

“US markets faltered as investors gear up for another pivotal week of economic releases,” said Interactive Investor head of markets Richard Hunter.

“The fragility of recent rebounds was highlighted as fresh risk-off sentiment emerged ahead of an inflation print this week, followed by the latest Federal Reserve decision on interest rates. The two announcements are intertwined, with any prolonged heat on the inflation number providing the Fed with more ammunition to maintain its hawkish view.”

The European Central Bank is set to take its deposit rate up by 50 basis points to 2%, despite the euro zone economy almost certainly being in recession, as it battles inflation running at five times its target.

In equity news, Chr. Hansen shares soared 25% after it agreed to combine with biotech firm Novozymes and in what will be the biggest-ever merger between two Danish companies. Novozymes shares fell 12%.

Shares in London Stock Exchange gained after Microsoft agreed to take 4% in the UK exchange operator as part of deal to migrate the bourse operator's data platform into the cloud.

Sanofi rose after the French health group dropped plans to bid for Horizon Therapeutics.

Reporting by Frank Prenesti for Sharecast.com