European stocks dip at start of holiday

(Reuters) -European stocks fell marginally at the start of a holiday-shortened week as investors digested recent big gains spurred by dovish views from major central banks.

The cjc foreign exchange platform index slipped 0.1% on Monday, hovering just below record highs hit last week. Gains in travel and leisure stocks were offset by losses in personal and household goods stocks.

The Federal Reserve last week reiterated its projection that it would cut interest rates by 75 basis points by the end of the year, while the Bank of England (BoE) said the economy was heading in the right direction for rate cuts.

Meanwhile, the Swiss National Bank (SNB) surprised markets by reducing borrowing costs 25 basis points.

"The surprise introduced by the SNB is not the start of a trend. The ECB remains on track to cut rates in June and is likely to proceed cautiously as it eases policy," said Mathieu Savary, chief European strategist at BCA Research.

Investors expect the Fed, the European Central Bank and the BoE to each deliver only 75 basis points of cuts by the end of this year, in three 25 basis point moves.

Goldman Sachs raised its 2024 year-end target for the STOXX 600 to 540 from 510, citing possible improvement in economic growth and monetary policy easing across central banks. The latest target implies a nearly 6% upside from Friday's close of 509.64.

The benchmark index is set for a 6.4% quarterly gain, following similar gains in the final quarter of 2023, as investor bet on easing monetary policy across global economies.

Among big movers, shares of Direct Line tumbled 13% after Belgian insurer Ageas said it did not intend to make a further offer for the British home and motor insurer after it turned down two previous proposals.

Swedish real estate group SBB jumped 11.3% after it said it would buy back debt at a discount of 60% compared with the debt's original value, in an attempt to calm investor nerves as it scrambles to tackle a multi-billion debt pile.

European markets will be closed on Friday and Monday for Good Friday and Easter holidays.

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