A trader works, as a screen broadcasts a press conference by U.S. Federal Reserve Chair Jerome Powell following the Fed rate cut announcement, on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 29, 2025.
Brendan McDermid | Reuters
LONDON — European stocks are expected to start the week on a flat to lower note Monday as global investors focus on the U.S. Federal Reserve’s monetary policy decision this week.
The U.K.’s FTSE index is seen opening 0.1% lower, Germany’s DAX and France’s CAC 40 flat and Italy’s FTSE MIB down 0.17%, according to data from IG.
The Fed is widely expected to cut its key interest rate at its final meeting of the year, with traders pricing in around an 87% chance of a 25-basis-point cut this Wednesday when the central bank concludes its two-day meeting, according to the CME FedWatch tool.
The Fed’s decision will set the scene for other central banks who will hold their final policy meetings of the year this week and next. The Swiss National Bank will deliver its latest policy update on Thursday and next week we’ll get rate decisions from the Bank of England and European Central Bank on Dec. 18.
The jury is still out as to whether the BOE will cut its base rate when it meets, but the ECB is widely expected to hold rates steady. The Bank of Japan is also set to hold its last policy meeting of 2025 on Dec. 19.
There are no major earnings in Europe on Monday. On the data front, German industrial production figures will be published.
Overnight, Asia-Pacific markets traded mixed as investors assessed data that showed China’s exports jumped more than expected in November. U.S. stock futures were near flat on Sunday night. U.S. markets received a boost on Friday after the delayed release of September’s core personal consumption expenditures price index came in softer than economists anticipated.
That was one of the last major economic releases ahead of the Fed’s policy gathering taking place this week.
— CNBC’s Alex Harring contributed to this market report.
