European stocks closed slightly lower on Monday as markets refrained from taking riskier assets ahead of a week of events that are likely to change the geopolitical backdrop and outlook to global rates.
The STOXX 50 lost 0.3% to close at 5,431 and the STOXX 600 was unchanged at 554.
Federal Reserve Chair Jerome Powell may provide guidance on the interest rate outlook in the Jackson Hole Symposium as softer labor market data strengthened the case for dissenters of the FOMC. Meanwhile, Ukrainian President Zelensky and European leaders were set to meet US President Trump in Washington to discuss a possible peace deal, amid concerns that Kyiv could face pressure to accept terms favoring Moscow.
Banks led the losses on the corporate front with BNP Paribas and Nordea each dropping more than 1.5%.
In turn, Vestas surged 15% on favorable rules in the US tax credit system.
Novo Nordisk gained over 6% after halving the price of Wegovy for customers who purchase it directly from the company.