European stock markets closed marginally lower on Monday with a profit warning from Germany's Lufthansa hitting airline stocks, while markets globally awaited clues from the U.S. Federal Reserve on its policy direction.
The pan-European STOXX 600 index finished 0.1% lower. France’s CAC 40 was led higher by luxury stocks, while IT company Indra Sistemas’ 7.1% slip took Spain’s IBEX 35 0.7% lower.
At the U.S. Federal Reserve policy meeting starting Tuesday, investors on balance think an interest rate cut is unlikely while many back a shift toward one in July.
A swing in money market pricing toward up-to-three rate cuts by the Fed this year have been at the heart of a recovery for stock markets this month after their worst falls in months in May.