European markets move lower as positive momentum falters

European markets were lower Tuesday, as positive momentum over the past few days falters.

The pan-European Stoxx 600 was down 0.7% in early trade, with all major bourses and the vast majority of sectors in the red. Banking stocks shed 2.1% while utilities goods were the biggest gainer, adding 0.3%.

Shares of Danish shipping giant Maersk climbed to the top of the benchmark, adding 2.1% before dipping slightly, after raising its full-year profit guidance on strong market demand and continued Red Sea disruptions.

Regional markets started the month higher Monday, extending last week’s rally, with investors looking ahead to the European Central Bank’s latest interest rate decision later this week.

The ECB is widely expected to cut interest rates for the first time since 2019 when policymakers meet on Thursday, but investors will watch closely to see whether a slightly higher-than-expected euro zone inflation print released Friday will affect the bank’s forthcoming decision.

On the data front, Germany releases its latest unemployment figures for May on Tuesday.

Overnight in the Asia-Pacific region Tuesday, India stocks slumped to lead regional markets lower as the country started counting votes for its 2024 general election.

The world’s most populous country started counting votes at 8 a.m. local time, with Prime Minister Narendra Modi projected to win a rare third consecutive term as per the exit polls.

U.S. stock futures were little changed on Monday evening as Wall Street looked to find its footing after an uneven start to the month.