Stoxx 600, FTSE, DAX, CAC, Fed cut
Regent Street in London celebrates the Christmas season on November 13, 2025 in London, England.
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LONDON — European stock markets started the last trading month of the year in the negative zone.
Stoxx 600 Monday started in negative territory; The pan-European gauge fell 0.44% shortly after the opening bell, with major stock markets and sectors in the red.
At the end of a volatile month for equities, regional markets closed in positive territory on Friday as concerns over high AI valuations came to the fore again.
Uncertainty over monetary policy also affected sentiment last month, but investors now expect the US Federal Reserve to cut interest rates at its December 9-10 meeting. Investors price the probability of a quarter-point rate cut at 87.4%. CME FedWatch Tool.
European investors will be closely monitoring progress towards a peace deal for Ukraine this week as US Special Envoy Steve Witkoff travels to Moscow to meet with Russian President Vladimir Putin and other Kremlin officials.
The talks took place after Ukraine announced that it had approved in principle the US-backed 19-article peace plan. The plan is a modified version of the first 28-item plan, which was prepared secretly by the USA and Moscow and appeared to be in favor of Russia.
Ukrainian and US officials, led by US Secretary of State Marco Rubio, held new talks in Florida over the weekend. Rubio said the talks were “very productive” but there was more work to be done.
Asia-Pacific markets started December in mixed territory as traders evaluated new manufacturing data from China that showed factory activity in China unexpectedly contracted in November.
Meanwhile, U.S. stock futures were little changed Sunday night after a gainful week as traders braced for a strong finish to 2025.
Seasonality also favors Wall Street. The S&P 500 rose an average of more than 1% in December, making it the third-best month of the year for the gauge in records dating back to 1950, according to Stock Trader’s Almanac.
There are no major earnings or data releases in Europe on Monday.
— CNBC’s Fred Imbert contributed to this market report.
