European stocks close lower as Italian PM resigns; FTSE MIB slides 1%

Hopes of stimulus from major world economies had previously buoyed equities. Investors are awaiting minutes from the Fed’s meeting on Wednesday, along with any hints from Chairman Jerome Powell ahead of the central bank’s economic symposium in Jackson Hole, Wyoming, which begins Friday.

Finnish central bank governor Olli Rehn said on Monday that the European Central Bank (ECB) was determined to act if the medium-term inflation outlook continues to miss its target of below but close to 2%. This followed the German finance minster indicating over the weekend that the government is prepared to deploy fiscal stimulus to boost its ailing economy,

Meanwhile, the People’s Bank of Chinapublished new loan prime rates intended to lower borrowing costs for companies and stimulate the economy.

On Wall Street, stocks slipped following a sharp rebound in the previous session. The Dow Jones Industrial Average fell 30 points while the Nasdaq and S&P 500 indexes were also negative.

The U.S. extended a reprieve permitting Chinese telecommunications giant Huawei to purchase components from U.S. companies to supply existing companies for 90 days. However, Washington’s Bureau of Industry and Security (BIS) also added another 46 Huawei affiliates to its blacklist, a move the tech company called “unjust” and “politically motivated.”