European markets cautious as investors weigh economic outlook

European markets cautious as investors weigh economic outlook

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This is CNBC's live blog covering European markets.

European markets started the new trading week on an uncertain note Monday with investors reassessing the economic outlook.

The pan-European Stoxx 600 was up 0.1% by mid-afternoon, with tech and mining stocks both adding 1.2% while chemicals slid 1.1%.

Global markets have been weighing the possibility that the Federal Reserve is getting ready to slow the pace of its inflation-fighting rate hikes after economic data last week showed a decline in wholesale prices and retail sales.

On Friday, Fed Gov. Christopher Waller said he favors just a quarter-point hike on Feb. 1, when the central bank gives its next interest rate policy update. Waller also said that rates are already high enough to be slowing the economy.

Kristalina Georgieva, managing director of the IMF, said Friday at the World Economic Forum that the global economic outlook is not as bad as feared a couple of months ago — "but less bad doesn't quite yet mean good."

"We have to be cautious," she told a closing panel at the World Economic Forum in Davos moderated by CNBC.

The Dow opened higher Monday as investors weighed a potential slowdown, or pause, from the Federal Reserve and braced for a busy earnings week.

Shares were higher in Asia overnight, but most markets in the region are closed for the Lunar New Year holiday, with markets in Shanghai shut for the whole week.

Brennan Spellacy, co-founder and CEO of climate platform Patch, discusses how companies can tackle decarbonization.

Stephen Isaacs, chairman of the investment committee at Alvine Capital, explains why he is optimistic about European markets but believes there is more downside to be realized in the U.S.

Bond markets could be an attractive investment this year, while equity markets could see further declines, Daniel Morris, chief market strategist at BNP Paribas, says.

Charlie White-Thomson, CEO of Saxo Markets U.K., discusses his outlook for inflation in Britain, and how this is impacting consumers and corporates.

Shares of German flavoring and fragrance producer Symrise fell more than 7% to the bottom of the Stoxx 600 in early trade after the company missed full-year earnings expectations.

Remy Cointreau shares climbed 3% after Citigroup upgraded the French liquor company's stock to "buy" from "neutral" and raised its target price.

- Elliot Smith

Kristalina Georgieva, managing director of the IMF, said Friday at the World Economic Forum that the global economic outlook is not as bad as feared a couple of months ago — "but less bad doesn't quite yet mean good."

"We have to be cautious," she told a closing panel at the World Economic Forum in Davos moderated by CNBC.

She said headline inflation was heading down and China's reopening was expected to boost global growth, with the IMF forecasting its economy will outpace global growth of 2.7% this year, at 4.4%, after slipping below it for the first time in four decades last year.

— Jenni Reid

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