European markets set to start the week with Fed, Trump and Xi meeting in mind

LONDON — European stocks are expected to start the new trading week on a positive note as traders look ahead to the U.S. Federal Reserve's meeting, more earnings and signs of a rapprochement between Washington and Beijing.

The U.K.'s FTSE index is seen opening 0.2% higher, Germany's DAX up 0.43%, France's CAC 40 up 0.48% and Italy's FTSE MIB 0.39% higher, according to data from IG.

Regional markets had ended last week higher as investors reacted to the latest U.S. inflation print, the only federal data to be released during the ongoing government shutdown, and a flurry of corporate earnings reports.

The U.S.annual inflation rate hit a lower-than-expected 3% in September, prompting a bounce in U.S. stocks amid anticipation that the U.S. Federal Reserve will cut interest rates when it meets this week.

The market is now pricing in a 96% chance of a 25 basis-point rate cut this week, according to the CME Fedwatch tool.

Geopolitics and trade are also at the forefront of investors' minds this week amid hopes that the U.S. and China can resolve an escalating trade dispute.

President Donald Trump and Chinese President Xi Jinping are scheduled to meet in South Korea on Thursday in an attempt to ease trade tensions, an event that could offer significant clarity and reassurance to investors. The leaders will meet on the sidelines of the Asia-Pacific Economic Cooperation, or APEC, Summit as Trump continues his Asia tour.

U.S. Treasury Secretary Scott Bessent recently indicated that talks between the leaders have been "constructive, far-reaching, in-depth," which could move the needle on negotiations.

Earnings in Europe come from Galp Energia and Deutsche Boerse on Monday while data releases include the German ifo business climate survey.

CNBC is at the Future Investment Initiative (FII) forum in Riyadh this week which will feature 20 heads of state and more than 600 speakers.

JPMorgan CEO Jamie Dimon, Goldman Sachs Group's David Solomon, Blackrock's Larry Fink and Brookfield's Bruce Flatt will be among the hundreds of bankers, consultants, and tech executives heading to the Kingdom for the three-day event.

— CNBC's Liz Napolitano contributed to this market report.