Italian banks stocks gain after Moody39;s upgrade
Bayer woes pile up as blood thinner drug trial fails
Julius Baer falls after guidance cut

Nov 20 Reuters European shares were subdued on Monday after a strong week driven by aggressive bets on interest rate cuts, with drugstopesticides group Bayer sliding to a more than 14year low and weighing on the healthcare sector and Germany39;s benchmark index.

The panEuropean STOXX 600 was little changed by 0945 GMT after jumping nearly 3 last week.

As investors started pricing in 100basispoint rate cuts for 2024 with the first one seen as soon as April, European Central Bank officials shunned market optimism, flagging stillhigh inflation and a somewhat resilient economy.

Markets are definitely jumping the gun. There39;s going to be a continuous repricing of expectations about that first rate cut the most important one because of that shift in mentality from central banks, Daniela Hathorn, senior market analyst at Capital.com.

The healthcare sector led sectoral declines with a 0.8 loss after Bayer lost 18.9, on track for its worst day on record, after aborting a large latestage trial testing a new anticlotting drug. Germany39;s DAX fell 0.1.

Separate news that the company had been ordered to pay 1.56 billion in the latest U.S. lawsuit over its commonly used Roundup weedkiller also hurt sentiment.

Meanwhile, data from the region showed producer prices fell along expectations in October, continuing a downward trend after…