European shares flat after best week in three months

(Reuters) – European shares opened flat on Monday, following their best weekly jump in three months, as investors prepared for another data-heavy week, with focus on U.S. Federal Reserve Chair Jerome Powell’s speech at Jackson Hole for interest rate cut clues.

The pan-European index was flat at 511.38 points, by 0715 GMT, after logging its best week since May 6 on Friday.

Defence stocks led declines, with Rheinmetall

G.DE>, BAE Systems (LON:), Saab Ab, Thales , Leonardo and Dassault Aviation falling between 1.4% and 4.3%, following reports in Germany that Berlin will limit military aid to Ukraine due to budget restrictions.

Investors are anticipating flash Purchasing Managers’ Index (PMI) data for France, Germany, Britain, and the Eurozone, as well as the U.S. PMI numbers and initial jobless claims data due later this week.

However, the main focus this week is the global central bank gathering at Jackson Hole, Wyoming, where Powell is expected to speak on Friday and likely give some cues on the Fed’s monetary policy path.

Elsewhere, Nexans dropped 3.8%, after Goldman Sachs cut its rating on the French power cable supplier’s stock to “Neutral” from “Buy”.