The European stocks are predicted to begin the new trading week on an uplift, after their global counterparts surged higher as expectations re-emerged of a Fed rate cut in December rekindled.
IG data shows the UK FTSE is set to open 0.55 percent higher, Germany’s DAX is up 0.8 percent, France’s CAC 40 rises 0.76 percent, and Italy’s FTSE MIB climbs 0.72 percent.
The markets of Asia-Pacific and U.S. stock futures increased overnight trading on Sunday as the market attempted to build on a robust recovery, which began on Friday after the leader of the New York Federal Reserve left the door open to a December interest rate reduction.
The CME FedWatch tool indicated that the next Fed meeting is on December 9-10, and the markets are now pricing in a 69.3 percent probability that the Fed will cut by a quarter-percentage-point.
The last few weeks in the global markets have been a storm of investors doubting the valuations of artificial intelligence-related technology names that have propelled much of the market growth in 2025.
Europe does not have any key data or earnings announcements on Monday, but investors in the U.K. are preparing for the Autumn Budget on Wednesday, and there is a growing speculation about how far and wide tax increases could be announced by British Finance Minister Rachel Reeves as she seeks to balance the budget.
Investors are watching U.S.-Ukraine peace negotiations after an initial 28-point plan, seen as pro-Russian, demanded major concessions from Kyiv.
The U.S. indicated on Sunday that the negotiating process was moving on over the weekend, which was visited by the U.S. Secretary of State Marco Rubio, but no agreement was achieved on security assurances to Ukraine.
