Chip stocks slip, keeping European

*

STOXX 600 flat

*

German business morale down to 86.6

*

Tech sector down 1%

*

Meyer Burger plunges 45%

*

UK markets closed

(Updated at 1600 GMT)

By Pranav Kashyap and Lisa Pauline Mattackal

Aug 26 (Reuters) - European shares were broadly flat in quiet trading on Monday, with semiconductor stocks leading the technology sector lower as investors looked ahead to several key economic data releases this week for more clues on the path of monetary policy.

Stocks of European semiconductor stocks slipped as focus turned to second-quarter results from U.S.-listed artificial-intelligence leader Nvidia, due Wednesday.

The technology sector was the biggest drag on the European benchmark, declining 1%. ASML Holding,, ASM International, and Aixtron lost between 1.6% and 2.7%.

Investors await key economic data this week for more signals on the policy path for the European Central Bank, which meets on Sept. 12. Traders have broadly priced in a 25 basis point rate cut.

The week's key release will be the flash estimate for EU inflation on Friday. Consumer price data for France, Italy and Spain, as well as Eurozone industrial and economic sentiment are also due throughout the week.

The pan-European STOXX 600 index was flat at 518.05 at 1600 GMT.

The index has notched gains in the previous three sessions, still trading around nearly a one-month high.

The German benchmark pared some earlier losses, closing down about 0.1% after a survey showed business morale for Europe's largest economy fell in August.

"The German economy seems to be back where it was a year ago: the growth laggard of the eurozone with little signs of an imminent improvement," said Carsten Brzeski, Global Head of Macro at ING.

German gross domestic product figures, employment, and retail sales data are on deck throughout the week.

Global markets will also closely watch U.S. personal consumption expenditure data on Friday for more signals on the scope of a broadly anticipated Federal Reserve September rate cut after Fed Chair Jerome Powell said "the time has come" to ease policy in a recent speech.

In contrast, ECB chief economist Philip Lane was more cautious, saying restrictive monetary policy is still needed as success in tackling inflation was not assured. Bank of England head Andrew Bailey also said further interest rate cuts would not be rushed.

Rate-sensitive real estate was the top sectoral performer, gaining 1.2% led by a nearly 4% jump in Vonovia shares.

The oil and gas sector gained 0.7%, as crude prices jumped.

Among individual stocks, Telecom Italia rose 2% on a report that Italian banker Claudio Costamagna is working on a plan to gather a group of investors potentially interested in buying France's Vivendi shares in the telecoms group.

Swiss solar panel maker Meyer Burger fell 45%, its worst day on record, after the company halted plans for a plant in Colorado and further delayed its financial results.

London markets were closed for a holiday. (Reporting by Pranav Kashyap and Lisa Mattackal in Bengaluru; Editing by Sonia Eileen Soreng and Ros Russell)