European indices close mixed as DAX, CAC40 decline on growth concerns

European equity markets ended Monday's session with mixed results, reflecting diverging economic outlooks across the region. Germany's DAX fell 0.4% to 15,420, while France's CAC40 dropped 0.3% to 7,280, and Italy's FTSE MIB declined 0.5% to 27,850. The weakness in major European indices weighed on EUR/USD, which retreated 0.2% to 1.0830 as risk sentiment deteriorated. German manufacturing data disappointed with PMI remaining in contraction territory at 43.2, raising concerns about Europe's largest economy. The euro faced additional pressure from ECB officials' dovish comments suggesting potential rate cuts if inflation continues moderating. Technical analysis shows EUR/USD testing support at 1.0820, with a break below potentially accelerating losses toward 1.0800. Currency traders are closely monitoring European economic indicators for signs of further weakness that could prompt more aggressive ECB easing.