US stock indices experienced a slight decline after a profitable week supported by hopes of interest rate cuts by the Federal Reserve. Traders are watching what will happen during this week’s Jackson Hole meeting, in addition to earnings reports from major retail stores. The Dow Jones Industrial Average fell by 0.11%, the S&P 500 decreased by 0.05%, and the Nasdaq Composite dropped by 0.03%.

Tesla shares fell 0.7% after the London Times reported that the electric car manufacturer is now offering discounts of up to 40% on leased cars in the UK amid declining sales.

The Federal Reserve minutes will remain in focus this week as central bank members travel to Jackson Hole, Wyoming, for the annual economic policy meeting. Investors will watch the event for clues about the future path of interest rates.

European stocks lost some strength as traders looked forward to the results of a meeting between European leaders and US President Donald Trump to discuss the Ukraine crisis.

During trading, the European Stoxx 600 index rose 0.08%, while the German DAX fell 0.18%, the Financial Times index rose 0.21%, and the French CAC dropped 0.50%.

Novo Nordisk shares rose 4.1%, and Vestas jumped 9.7%, being among the biggest gainers on the Stoxx 600 after a recommendation that the stock is a safe haven. Commerzbank shares fell 3.7% after Deutsche Bank downgraded the stock.

Benjamin Joy from Deutsche Bank said in a note: “We still welcome Commerzbank’s fundamental indicators, including rising profitability and return on capital, as well as expected benefits from German fiscal stimulus.”

He added: “However, after its shares tripled last year, they are now trading at a premium ranging from 20% to 42% on price-to-earnings ratio compared to the sector, even with our above-consensus forecasts.”

In Tokyo, the Japanese Nikkei index continued its gains from last week, closing at a record high, while the weak yen boosted car manufacturers’ shares. The Nikkei rose 0.77%, and the broader Topix index climbed 0.43%.

Japanese stocks have risen this month amid renewed optimism about local companies’ outlook and economic growth as the impact of US tariffs becomes clearer.

Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Lab, said: “Local stocks maintained last week’s momentum. There were expectations that foreign investors would continue buying Japanese stocks.”