European Shares Retreat as JDE Peet's Soars on Buyout News

European shares retreated on Monday, pulling back from nearly reaching record highs after a surge driven by optimism surrounding U.S. monetary policy. The decline comes as JDE Peet's, a Dutch coffee company, saw its shares jump 17% thanks to a buyout agreement with Keurig Dr Pepper worth 15.7 billion euros.

Despite broader market pressure following Friday's rise, where U.S. Federal Reserve Chair Jerome Powell hinted at a potential interest rate cut due to job market risks, individual stocks reacted variably. The STOXX 600 index decreased by 0.2%, while the German DAX and France CAC 40 dropped 0.4% and 0.5%, respectively.

Market sentiment showed little improvement despite an Ifo Institute survey indicating better-than-expected German business morale. Additionally, investors are eyeing Nvidia's upcoming quarterly report and economic data from the U.S. and eurozone, as these could shape future monetary policy moves. Renewable energy firms also faced challenges following U.S. policy changes.

(With inputs from agencies.)