European markets opened lower on Monday in what will be the region's last full trading session.
The pan-European Stoxx 600 index fell about 0.4% shortly after the opening bell, with all sectors and major exchanges in the red. The biggest losses were companies from the industrial, media and technology sectors.
Trading in Europe is expected to be subdued on Monday as markets prepare to rest ahead of the New Year holidays.
IN instant assessment published on Monday, Spain's National Statistics Institute (INE) said its annual EU harmonized inflation rate rose to 2.8% in December, up from 2.4% recorded in November.
The figure was higher than analyst forecasts in a Reuters poll of 2.6%.
INE estimates showed that core inflation in Spain – which excludes fresh food and energy prices – rose by 2.6% year-on-year.
The update was made following the decision of Robert Holzmann, member of the Governing Council of the European Central Bank – he tells the Austrian newspaper Kurier over the weekend that the institution may slow its rate-cutting campaign due to sticky inflation.
“I don't see any interest rate increases at the moment,” he said. “However, it may be that more time is needed before the next interest rate cut.”
His remarks came as Italian lawmakers adopted its government's budget for 2025whose goal is to bring the country's budget deficit closer to 3% to ensure compliance with EU regulations.
In an interview published Saturday, France's newly appointed Finance Minister Eric Lombard told the news outlet Sunday “La Tribune”. According to a translation by the Reuters news agency, the planned draft state budget for 2025 assumed a deficit of slightly above 5%.
Accommodation in Asia, wrestling was mixed as investors monitored political turmoil in South Korea as well as industrial data from the country. Earlier this week, Japan also released economic data that showed the decline in activity at its factories had slowed this month.
Shares of Korean airlines fell on Monday in the aftermath Jeju Air plane crash which killed 179 people the day before and sent the Jeju Air share price to its lowest level ever.
— CNBC's Lee Ying Shan and Reuters contributed to this roundup of European markets.