European Stocks Drop Amid Earnings and Policy Meetings

European stock markets opened the week lower as investors braced for a wave of corporate earnings and key central bank meetings. At 03:05 ET (08:05 GMT), Germany's DAX fell 1%, France's CAC 40 slid 0.2%, and the UK's FTSE 100 dropped 0.4%.

The spotlight is on the German Ifo business sentiment survey, set to offer insights into the eurozone’s largest economy ahead of the European Central Bank's (ECB) policy decision on Thursday. Economists anticipate the ECB will cut rates by 0.25%, marking its fifth reduction to combat sluggish growth and easing inflation. Meanwhile, the Federal Reserve is expected to maintain current rates at its two-day meeting ending Wednesday.

Corporate earnings dominate the week, with results due from major players like Shell, LVMH, Deutsche Bank, Roche, and ASML. On Monday, Ryanair shares climbed 2.5% after surpassing profit expectations for the last quarter, though the airline reduced its passenger forecast for the next year.

In Switzerland, Julius Baer’s chairman Romeo Lacher announced his resignation amidst a management overhaul, while SGS ended talks on a $30 billion merger with Bureau Veritas. Tech investors are closely watching Dutch chipmaker ASML as Chinese startup DeepSeek unveiled a ChatGPT rival, challenging OpenAI with a cost-effective alternative.

Oil prices edged lower after last week’s steep declines. By 03:05 ET, US crude futures dropped 0.6% to $74.19 per barrel, while Brent fell 0.6% to $77.08. President Trump's call for OPEC to cut crude prices and weak Chinese business activity data added pressure to the energy market.

This volatile mix of earnings reports, central bank decisions, and fluctuating oil prices is setting the tone for the week ahead.