Gloom attends European markets after Friday rally in the U.S.

Leading European stock indices opened lower on Monday following a major rally on Friday across U.S. markets. U.K. trading remained closed for a bank holiday, Doloresz Katanich reported for Euronews.

The DAX in Frankfurt fell 0.4% shortly after opening. (Photo: Deutsche Börse Group)

As investors digested the prospect of a potential U.S. Federal Reserve rate cut in the coming months, European markets saw a correction Monday morning.

Benchmark indexes dipped into negative territory except for the FTSE 100, which was closed due to the U.K. holiday.

The DAX in Frankfurt fell 0.4% shortly after opening, the CAC 40 in Paris slipped 0.6%, Madrid’s IBEX 35 was down more than 0.4%, and the pan-European STOXX 600 dropped 0.3% as of 10:00 CEST.

The euro also weakened slightly against the U.S. dollar, trading at 1.1707. Among market outliers, shares of Danish energy company Ørsted plunged to a record low, losing more than 17% in Copenhagen.

The selloff came after the U.S. administration halted construction of Ørsted’s offshore wind project, Revolution Wind, on Friday, alarming investors, the Associated Press (AP) reported.