European stocks are projected to begin the new trading week in a somewhat gloomy manner on Monday. According to data from IG, the FTSE index of the UK has opened 0.13 percent lower, Germany’s DAX and France’s CAC 40 have declined, and the FTSE MIB of Italy has slipped 0.2 percent.
The gloomy mood of the regional stocks follows a poor performance of the European markets last week, with regional stock markets falling sharply on Friday as concerns rose about an AI bubble, and the global economy caused a jolt to investor confidence.
Recent U.S. Federal Reserve officials have also given comments that have caused investors to rethink the probability of a December rate cut.
CME Group’s FedWatch tool indicated that the markets on Monday are factoring a 56.1 percent probability of the Fed remaining unchanged in rates at its next meeting.
However, in the previous month, the market had attached a 95 percent probabilistic factor of an end-of-year cut.
Stateside overnight, stock futures were slightly changed, after a tumultuous week where valuation concerns, market rotations, and recalibration of Federal Reserve rate cut anticipations put pressure on the artificial intelligence trade.
On the other hand, the markets in Asia-Pacific also traded mixed overnight as investors evaluated the increasing tension between Japan and China when the Chinese government alerted its citizens about traveling and studying plans in Japan.
Meanwhile, there are no significant European earnings or data released on Monday.
