European stocks drop ahead of ECB Draghi’s testimony

The European markets had a flattish start to a brand new week, and from there turned negative, snapping two back-to-back weekly advances, as the bulls take a breather heading into the key FOMC minutes due to be published in the week ahead.

Moreover, markets are taking an opportunity to take profits off the table, as the US dollar and treasury yields bring a pause to their ongoing upward rally. However, higher oil prices failed to lift the moods around the region’s indices, as negative corporate news weighed heavily on the markets’ sentiment.

On the corporate news front, the office cleaners provider Mitie Group Plc fell 14% after it expects its earnings to fall short of expectations. Essentra Plc slumped 18% after cutting its operating profit forecast. While drug makers dropped for the second straight session and also led the decline in the European markets.

Meanwhile, Germany's DAX 30 index trades -0.49% lower around 10,610 levels, while the UK's FTSE 100 index drops -0.20% to 6,762. Among the other indices, the French CAC 40 index drops -0.42% to 4,485 while the pan-European Euro Stoxx 50 index loses -0.44% to now trade around 3,011 points.

Later today, all eyes remain on the testimony from the ECB president Draghi for fresh insights on the bank’s monetary policy stance and  its subsequent impact on the markets.