Orsted Shares Plunge 30% on Rights Issue, European Markets Steady Ahead of U.S.-Russia Summit

European stock markets remained stable on Monday as investors awaited the upcoming meeting between the U.S. President and the Russian President later this week. The Stoxx Europe 600 index closed relatively unchanged, with telecommunications, banking, and personal care sectors outperforming the broader market. Conversely, consumer goods and chemical sectors experienced declines. Oil prices saw a slight decrease as market speculation suggested that the meeting could potentially increase the likelihood of resolving the Russia-Ukraine conflict, thereby boosting supply.

In individual stock movements, shares of Danish company Orsted A/S dropped by 30% after the company announced plans to raise up to 600 billion Danish kroner (93 billion USD) through a rights issue to fund its offshore wind farm projects. The market's skepticism regarding efforts to end the Ukraine conflict was highlighted by the trading main manager of an asset management company, who noted that tariffs and the trajectory of the U.S. economy would continue to dominate market discussions in the coming weeks.

In addition to the highly anticipated meeting, investors are closely monitoring U.S. inflation data this week. These data points are expected to provide clarity on market expectations for the next interest rate cut by the Federal Reserve. The consumer inflation report is scheduled for release on Tuesday, followed by the producer price data on Thursday.