People visit a lookout point in Greenwich Park, with the Canary Wharf financial district in the distance, during sunny weather but cold weather in London, U.K., on Jan. 2, 2026.
Henry Nicholls | Afp | Getty Images
LONDON — European stocks are expected to open in flat to lower territory on Monday.
The U.K.'s FTSE index is expected to open flat, Germany's DAX down 0.3%, France's CAC 40 flat and Italy's FTSE MIB down 0.4%, according to data from IG.
Geopolitics could continue to determine market sentiment this week as tensions between the U.S. and Canada resurface.
Canadian Prime Minister Mark Carney said on Sunday that his country has no intention of pursuing a free trade agreement with China, after U.S. President Donald Trump threatened to impose 100% tariffs on Ottawa if it signed a trade deal with China.
"Canada respects our engagements, our commitments. We have commitments under CUSMA (Canada-United States-Mexico Agreement) not to pursue free trade agreements with non-market economies without prior notification. We have no intention of doing that with China or with other non-market economy," Carney said.
Asia-Pacific markets traded mixed Monday as investors assessed the situation, while U.S. stock futures fell overnight as traders braced for a big week of key earnings reports and a U.S. monetary policy meeting.
More than 90 S&P 500 companies are set to post quarterly reports this week, including Apple, Meta Platforms, and Microsoft. So far, the earnings season has been strong, with 76% of the companies that have reported beating expectations, per FactSet.
Traders this week will also turn their attention to the Federal Reserve. The central bank is set to announce its first policy decision of the year on Wednesday.
While the Fed is widely expected to keep its overnight rate unchanged, Wall Street will look for clues on when Fed officials will cut rates.
— CNBC's Fred Imbert contributed to this market report.
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