European Markets Poised for Weak Start as Investors Brace for Economic Uncertainty
European markets look set to begin the new trading week on a downbeat note, with early data pointing to a cautious atmosphere among investors. Market indicators show the U.K.’s FTSE slipping by 0.13% at the open, while Germany’s DAX and France’s CAC 40 are expected to edge slightly lower. Italy’s FTSE MIB is also projected to fall around 0.2%, reinforcing the somber tone heading into Monday’s session.
Last week ended on a troubled note for European equities, with major regional indexes closing sharply lower. Fears of a growing artificial intelligence bubble and broader global economic concerns weighed heavily on sentiment. The sudden dip left investors questioning whether recent market momentum had outpaced economic realities.
Adding pressure to the markets, comments from U.S. Federal Reserve officials have led investors to rethink the likelihood of an interest rate cut in December. According to CME Group’s FedWatch tool, markets now place a 56.1% chance on the Fed holding rates steady at its next meeting — a significant shift from a month ago, when there was a 95% expectation of a year-end rate cut. The uncertainty has spilled over into global markets, particularly those tied to tech valuations and AI-related stocks.
Across the Atlantic, U.S. stock futures were mostly flat overnight following a volatile week marked by valuation concerns and shifting expectations around Federal Reserve policy. Investors have been adjusting portfolios as the artificial intelligence trade faces renewed scrutiny and market rotation picks up pace.
In Asia, trading was mixed overnight as rising geopolitical tension between Japan and China created additional unease. Beijing’s warning to citizens regarding travel and study plans in Japan underscored the strained relations, adding another layer of uncertainty for global traders. With no major European earnings or data releases scheduled for Monday, investors are likely to remain focused on international developments and central bank signals.
source: cnbc