Major European bourses were little changed at the start of the week, with indices largely treading water as investors digested the latest developments in global trade tensions and positioned themselves ahead of a busy schedule of central bank decisions, economic data releases, and corporate earnings reports.
European shares little changed on Monday
Market sentiment remained cautious, with traders closely monitoring signals from both the U.S. and China amid hopes for a potential thaw in trade relations. President Donald Trump stated that he had no plans to speak with Chinese President Xi Jinping in the immediate term, yet expressed openness to easing tariffs on Chinese imports—an apparent attempt to reignite stalled negotiations and reassure markets increasingly concerned about prolonged trade uncertainty.
How stocks are performing
The lack of a definitive catalyst left equity markets directionless, with the pan-European STOXX 600 oscillating in a narrow range. Shares of the region’s largest blue-chip companies were mixed, underscoring the prevailing market indecision. Technology names showed divergent performance, with SAP slipping 0.6% and semiconductor giant ASML Holding trading near the flatline, as investors awaited upcoming earnings and sector guidance amid concerns about slowing global chip demand. In contrast, luxury and consumer goods stocks offered modest support to the indices, with LVMH rising 0.2%, L’Oréal gaining 0.5%, and industrial gas producer Linde outperforming with a 1.5% advance, buoyed by positive sentiment around resilient margins and global demand for industrial gases.
Focus on Fed meeting
Elsewhere, market participants remained focused on upcoming monetary policy decisions from the Federal Reserve, the European Central Bank, and the Bank of England, which are expected to provide crucial signals on the future path of interest rates amid persistent inflation and slowing growth. Additionally, investors are awaiting preliminary GDP figures, eurozone inflation data, and key corporate earnings—including those from major banks and consumer goods firms—which are expected to further influence market direction later in the week. Until then, thin trading volumes and cautious sentiment are likely to persist, reflecting the wait-and-see approach currently dominating investor behavior.
