British News Agency

According to analysts, the UK’s FTSE Index is set to open down 0.26%, Germany’s DAX Index down 0.62%, France’s CAC 40 down 0.46%, and Italy’s FTSE MIB down 0.5%. Regional markets closed in positive territory on Friday after a volatile month for stocks, as concerns over high artificial intelligence valuations resurfaced.

Uncertainty over monetary policy also affected markets last month, but investors now expect the U.S. Federal Reserve to cut interest rates at its December 9–10 meeting. Analysts say investors are pricing in an 87.4% probability of a quarter-point rate cut.

European investors will closely monitor developments toward a potential peace agreement in Ukraine this week, as U.S. Special Representative Steve Witkoff is expected to travel to Moscow to meet Russian President Vladimir Putin and other Kremlin officials.

The talks follow Ukraine’s announcement that it has, in principle, approved the U.S.-backed 19-point peace plan. The plan is a revised version of an initial 28-point document secretly prepared by the U.S. and Moscow, which was seen as more favorable to Russia.

Ukrainian and U.S. officials, led by U.S. Secretary of State Marco Rubio, held further discussions in Florida over the weekend. Rubio said the talks were “very productive,” but added that there was still “a lot of work to do.”

Asia-Pacific markets began December mostly lower as investors assessed new manufacturing data from China and expectations that the Federal Reserve might cut rates this month.

Japan’s Nikkei 225 Index fell 1.3%, while the Topix Index dropped 0.72%. Among the biggest losers in the Nikkei 225 were electric equipment company Fujikura (-8.11%), Sumitomo Pharma (-5.82%), and Advantest (-4.74%). South Korea’s Kospi Index slipped 0.66%, while the small-cap Kosdaq rose 1.29%. Australia’s ASX/S&P 200 Index declined 0.23%.

Meanwhile, as investors prepare to wrap up a strong 2025, U.S. stock futures changed very little Sunday night following a profitable week.

Seasonality is also in Wall Street’s favor. According to the Stock Trader’s Almanac, the S&P 500 has historically posted an average gain of more than 1% in December, making it the third-best month of the year in records dating back to 1950.

No major earnings reports or significant data releases are expected in Europe on Monday.