European Stock Markets Edge Higher Ahead of Trump’s Inauguration
European stock markets opened slightly higher on Monday, with traders curbing their activity ahead of the inauguration of US President-elect Donald Trump later in the session. The German DAX rose 0.1%, the French CAC 40 gained 0.1%, and the UK’s FTSE 100 traded 0.1% higher.
The focus on Monday will be on Trump’s inauguration, with trading ranges and volumes expected to be impacted, particularly since US markets are closed for Martin Luther King Jr. Day. Trump’s second term in office has been met with a sense of uncertainty, with investors wary of potential changes to trade policies and regulations.
The World Economic Forum is set to commence in Davos, Switzerland, with leaders from around the world gathering to discuss economic growth and development. Trump is scheduled to address the meeting via video link on Wednesday, along with other global leaders, including European Central Bank President Christine Lagarde and European Commission President Ursula von der Leyen.
In other news, German producer prices rose 0.8% in December, lower than the 1.1% expected. The People’s Bank of China left its benchmark interest rate unchanged, keeping rates at record lows in anticipation of more clarity on trade tariffs.
Few earnings reports are expected in Europe on Monday, but Belimo Holding, a Swiss heating and ventilation solutions maker, reported full-year revenue above market expectations, sending its shares 2.4% higher. Oil prices slipped lower on Monday, with traders taking risk off the table ahead of Trump’s inauguration, with US crude futures dropping 0.5% to $77.01 a barrel and Brent crude falling 0.5% to $80.36 a barrel.
