European stocks opened the week on a calm note, with traders keeping an eye on several big global events that could shape market sentiment. Investors are waiting for updates from major central banks, new corporate earnings reports, and a planned meeting between U.S. President Donald Trump and China’s President Xi Jinping.
By early Monday morning, Germany’s DAX index was up 0.2%, France’s CAC 40 slipped 0.1%, and the U.K.’s FTSE 100 was mostly flat.
Market confidence improved late last week after news broke that Trump and Xi are expected to meet during next week’s APEC summit in South Korea. Officials from both countries have already outlined a possible trade framework for the leaders to discuss. If they reach an agreement, it could ease U.S. tariffs on Chinese goods and reduce China’s export restrictions on rare earth materials. Such a deal would calm investors who have been worried about growing U.S.–China tensions hurting global trade. Trump sounded optimistic, saying he respected Xi and believed a deal was within reach.
The focus this week will also be on the Federal Reserve, which is widely expected to cut interest rates after U.S. inflation slowed to 3% in September. According to market data, there’s a 96% chance the Fed will lower rates by 0.25 percentage points. Other central banks, including those in Japan and Canada, are also holding meetings this week. Meanwhile, the European Central Bank is expected to keep its policies unchanged as inflation and growth in the eurozone remain steady.
In Europe, investors are also awaiting Germany’s latest Ifo business confidence report for signs of improvement in the region’s biggest economy.
Earnings season continues to capture attention as well. In the U.S., several tech giants, Microsoft, Apple, Alphabet, Amazon, and Meta, are all reporting results this week. These companies, often called part of the “Magnificent Seven,” could heavily influence market direction. Around one-third of S&P 500 companies will release their results this week, including Eli Lilly, Exxon, Chevron, Visa, and Mastercard.
In Europe, Portuguese energy company Galp Energia reported a strong performance, with third-quarter profit up 53%, helped by higher refining margins and stronger trading results.
Oil prices steadied on Monday after strong gains last week. Traders are encouraged by signs that U.S.-China trade tensions may ease, which could help support global energy demand. Brent crude was slightly lower at $65.17 a barrel, and U.S. West Texas Intermediate was at $61.48 a barrel.
Last week’s rise in oil prices came after the U.S. imposed new sanctions on Russia’s oil sector. The recent optimism around trade talks between the U.S. and China is helping balance out earlier market fears, keeping crude prices supported as the week begins.
