Pedestrians shelter from the rain under umbrellas as they pass the Elizabeth Tower, commonly known by the name of the clock’s bell, “Big Ben”, at the Palace of Westminster, home to the Houses of Parliament, in London on February 22, 2024.
Henry Nicholls | AFP | Getty Images
LONDON — European stocks are expected to start the new trading week on a slightly dour note Monday.
The U.K.’s FTSE index is seen opening 0.13% lower, Germany’s DAX and France’s CAC 40just a touch lower and Italy’s FTSE MIB down 0.2%, according to data from IG.
The pessimistic mood among regional stocks comes after a troubled week for European markets last week, with regional bourses closing sharply lower on Friday as concerns about an artificial intelligence bubble and the global economy shook investor confidence.
Comments from U.S. Federal Reserve officials in recent weeks have also prompted investors toreconsider the likelihood of a December rate cut. On Monday, markets are pricing in a 56.1% chance that the Fed stands pat on rates at its next meeting, according toCME Group’s FedWatch tool. A month ago, the market had assigned a 95% probability to an end of year cut.
Stateside overnight, stock futures were little changed following a choppy week in which valuation fears, a rotation within the market and a recalibration of Federal Reserve rate cut expectations pressured the artificial intelligence trade.
Meanwhile, Asia-Pacific markets traded mixed on overnight as investors assessed rising friction between Japan and China after Beijingwarned its citizensabout travel and study plans in Japan.
There are no major European earnings or data releases Monday.
— CNBC’s Fred Imbert and Lee Ying Shan contributed to this market report.
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