European stocks fall dragged by British index, banks shine

(Reuters) – European stock markets fell on Monday, dragged by the decline of the British FTSE index before the strengthening of the pound sterling, while liquidation in defensive sectors slowed the early advance of the markets.

* After rising to 0.2% after a surprising increase in German exports and hopes of stimuli from the European Central Bank during this week, the pan-European STOXX 600 index was erasing its profits as the day progressed.

* The index closed with a 0.3% drop, ending a winning streak that lasted for three days. The actions of the FTSE 100 with greater international presence fell 0.6% due to the advance of the pound, following the optimism generated by the news that suggest that the United Kingdom will not leave the European Union without an agreement.

* However, most investors expect the monetary policy meeting to be held by the ECB on Thursday, when the central bank is expected to introduce a new wave of monetary stimulus.

* The European banking index, the one with the worst performance this year among the main sub-indices, rose 2.2% to reach a maximum of more than one month.

* The index recovered from the lows of almost eight years that it touched in mid-August, in the middle of a generalized recovery in the hope that the trade dispute between the United States and China will be resolved. It also helped the rebound that investors moderated expectations about aggressive monetary relief measures by the ECB.

* Meanwhile, the actions of the defensive sectors, including those of health, food and beverages and public services, which have registered a strong recovery this year, fell around 1.7%, which weighed on the STOXX 600.