European stocks started the week in positive territory on Monday, with the pan-European Stoxx 600 index inching up 0.1% in early trading. Most sectors were in the green, though major bourses showed mixed results, reflecting cautious investor sentiment at the start of 2026.
France’s CAC 40 slipped 0.13%, while Italy’s FTSE MIB rose 0.33%. London’s FTSE 100 was nearly flat, up just 0.02%, and Germany’s DAX dipped 0.04%. Spain’s IBEX 35 performed slightly better, advancing 0.4%. Overall, the markets reflected a blend of optimism and caution, with investors keeping a close eye on corporate news and international developments.
Geopolitical concerns were again in focus, as Canadian Prime Minister Mark Carney confirmed that Canada has no plans to pursue a free trade agreement with China. His comments came after U.S. President Donald Trump threatened to impose tariffs on Ottawa if it signed a trade deal with Beijing. Analysts say such geopolitical tensions could influence market sentiment throughout the week.
In corporate news, Danone shares fell 2.9% following a global recall of infant formula contaminated with a toxin. Ryanair, on the other hand, edged up nearly 0.1% after raising its full-year fare growth forecast to more than 7%, surpassing prior expectations. Meanwhile, Airbus saw shares fall 1% as CEO Guillaume Fauray cited an “unprecedented number of crises” facing the aerospace sector in 2026.
Investors are also closely watching gold, which hit record highs on Monday, with spot prices climbing 2.3% to $5,096. In the U.S., more than 90 S&P 500 companies, including Apple, Meta, and Microsoft, are set to report quarterly earnings this week. The Federal Reserve is scheduled to announce its first policy decision of the year on Wednesday, with markets seeking guidance on potential interest rate cuts.
source: cnbc