LONDON — European stocks started the last trading month of the year in negative territory.

The Stoxx 600 began Monday in negative territory, with the pan-European benchmark down 0.3% shortly after 8:30 a.m. in London (3:30 a.m. ET) with major bourses and sectors in the red.

Regional markets had closed in positive territory on Friday, at the end of a choppy month for stocks as concerns over lofty AI valuations returned to the fore.

Uncertainty over monetary policy also affected sentiment last month but investors are now expecting the U.S. Federal Reserve to trim interest rates when it meets on Dec. 9-10. Traders are pricing in an 87.4% chance of a quarter-point rate cut, according to the CME FedWatch Tool.

European defense stocks fell sharply on Monday as investors kept a cl

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