European markets started the week on a positive note as investors prepared for a series of key central bank meetings across the continent. The pan-European Stoxx 600 index rose 0.38% early Monday in London, with most sectors showing gains. Major bourses, including Germany’s DAX, France’s CAC 40, and the U.K.’s FTSE, also opened higher, signaling cautious optimism among traders.
The U.K.’s FTSE climbed 0.43% immediately after the opening bell, while Germany’s DAX gained 0.44%, France’s CAC 40 increased 0.30%, and Italy’s FTSE MIB surged 0.63%. Analysts suggest that investors are weighing a mix of economic data, central bank signals, and global market sentiment as they position themselves for a busy week ahead.
Attention is squarely on Europe’s central banks, with the European Central Bank (ECB) scheduled to hold its final policy meeting of 2025 on Thursday. ECB President Christine Lagarde indicated that the bank may revise its growth forecasts upward for the Eurozone after predicting 1.2% GDP growth in September. The Bank of England, Riksbank, and Norges Bank are also expected to announce their year-end policy decisions, with the BOE potentially trimming interest rates. Eurozone and U.K. inflation data will follow on Wednesday, adding more fuel to market expectations.
Beyond financial markets, European leaders face a political test this week as they meet in Brussels to discuss funding for Ukraine. A potential 210-billion-euro loan to Kyiv could be backed by billions in frozen Russian assets. The summit underscores the ongoing intersection of geopolitics and economic stability in the region, which continues to influence investor sentiment.
Overnight, U.S. stock futures remained mostly unchanged after a mixed performance last week, with tech stocks seeing a rotation toward lower-valued sectors. Asia-Pacific markets fell Monday following Wall Street declines, while U.S. economic reports—including November nonfarm payrolls and October retail sales—are expected this week after previous delays due to the government shutdown. Investors worldwide are watching closely as global markets navigate a complex mix of policy, inflation, and geopolitical developments.
source: cnbc