European Markets Rise Ahead of Fed Decision, Trump-Xi Meeting, and Key Earnings Reports

 European markets are poised for a positive start to the week as investors eye major global events, including the U.S. Federal Reserve’s policy meeting, earnings announcements, and a crucial meeting between U.S. President Donald Trump and Chinese President Xi Jinping. Futures data from IG indicate a mild uptick across the region, with London’s FTSE 100 expected to open 0.2% higher, Germany’s DAX up 0.43%, France’s CAC 40 rising 0.48%, and Italy’s FTSE MIB gaining 0.39%.

Last week’s upbeat close in European trading was driven by easing U.S. inflation data and a wave of corporate earnings. The latest figures showed U.S. annual inflation slowing to 3% in September — below forecasts — boosting optimism that the Federal Reserve may soon pivot toward monetary easing. Markets now anticipate a 96% probability of a 25 basis-point interest rate cut at the Fed’s meeting this week, according to the CME FedWatch tool.

The Fed’s decision is seen as pivotal for global markets still navigating uncertainty around inflation, growth, and policy direction. Investors are also weighing the impact of the ongoing U.S. government shutdown, which has delayed several key data releases, leaving the inflation print as one of the few economic indicators available to guide sentiment.

Geopolitical developments are adding another layer of intrigue to the trading week. President Trump and President Xi are set to meet in South Korea on Thursday during the Asia-Pacific Economic Cooperation (APEC) Summit — their first encounter of Trump’s second term. Expectations are high that the discussions could help defuse rising trade tensions between Washington and Beijing. U.S. Treasury Secretary Scott Bessent described recent talks as “constructive, far-reaching, and in-depth,” signaling potential progress toward a more stable trade relationship.

Meanwhile, Europe’s corporate calendar remains busy. Investors are watching earnings from Galp Energia and Deutsche Boerse, alongside the release of Germany’s closely watched Ifo business climate survey. Elsewhere, attention is also turning to the Future Investment Initiative (FII) forum in Riyadh, where more than 600 global leaders — including JPMorgan’s Jamie Dimon, Goldman Sachs’ David Solomon, and BlackRock’s Larry Fink — will gather to discuss global investment trends.

source: cnbc