Global Economy

Global Economy

European Markets Poised for Cautious Start Ahead of Fed Decision

European equity indices are expected to open on uneven footing on Monday as traders await the U.S. Federal Reserve’s policy meeting later in the week. Early indicators point to a modest rise in France’s CAC 40, a slight dip in Germany’s DAX, and a small gain in the UK’s FTSE 100, while geopolitical tensions continue to colour market sentiment. Investors are likely to stay on the sidelines until the Fed’s interest‑rate decision is announced, using the week ahead to gauge both monetary policy direction and the impact of geopolitical developments in Eastern Europe and the Middle East.

January 26th, 2026
1 min read
By boursenews.ma

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European markets expected to open mixed on Monday

European equity indices are projected to start the day unevenly on Monday, as traders keep a close eye on the upcoming U.S. Federal Reserve policy meeting later in the week and remain wary of ongoing geopolitical frictions.

Pre‑market data suggests a modest 0.06 % rise for France’s CAC 40 at the open. Futures point to a 0.16 % dip for Germany’s DAX in Frankfurt, while the UK’s FTSE 100 in London is set for a 0.06 % gain.

Investors will likely wait for the Fed’s decision on interest rates before committing to larger positions, and the broader market sentiment is being shaped by the latest developments in Eastern Europe and the Middle East.

  • Jan 22 – European shares bounce after Trump’s tariff reversal.
  • Jan 21 – Fourth consecutive European market decline amid geopolitical strain.

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