European equities traded largely unchanged on Monday, holding on to their early-week momentum as investors focused on easing geopolitical tensions and a busy earnings calendar.
As of 07:10 GMT, Germany’s DAX slipped 0.1%, France’s CAC 40 edged down 0.1%, while the U.K.’s FTSE 100 gained 0.3%.
Optimism on U.S.–China Relations
Market sentiment has improved in recent days on hopes that tensions between the U.S. and China may ease. This was reinforced by comments on Monday from Donald Trump, who expressed optimism about reaching a fair trade deal with Xi Jinping during their upcoming meeting at an economic conference in South Korea next week.
Trade frictions between the two largest economies have weighed heavily on global markets, with disputes over tariffs, technology, and market access still largely unresolved.
Takaichi to Take Office as Japan’s First Female PM
In Asia, Sanae Takaichi, leader of the Liberal Democratic Party (Japan), is expected to be sworn in later today as Japan’s 104th prime minister, becoming the first woman to hold the office.
She succeeds Shigeru Ishiba, who stepped down in September after the party’s electoral defeat. Known for her fiscally accommodative stance, Takaichi is anticipated to ramp up public spending on infrastructure, industrial policy, and defense.
Corporate Earnings Under the Microscope
With a quiet European macroeconomic calendar, investors are turning their attention to quarterly earnings.
- Assa Abloy (BIT:1ASSA) posted third-quarter operating profit slightly above expectations, despite persistent weakness in the North American housing market.
- Husqvarna (BIT:1HUSQ) missed forecasts, as soft North American demand and uneven global trends weighed on results.
- Unilever (LSE:ULVR) announced it will revise the timeline for the planned spinoff of The Magnum Ice Cream Company N.V. due to the ongoing U.S. federal government shutdown.
- L’Oréal (EU:OR) is set to release its earnings later today, following its €4 billion acquisition of Kering’s beauty division.
Investors are also eyeing upcoming U.S. earnings, with reports from Netflix (NASDAQ:NFLX) and The Coca-Cola Company (NYSE:KO) scheduled for Tuesday.
Oil Prices Weaken Further
Crude prices extended losses Tuesday, hovering near five-month lows as concerns over a looming oversupply and softening demand weighed on sentiment.
Brent Crude futures slipped 0.5% to $60.72 a barrel, while West Texas Intermediate fell 0.5% to $56.73. Prices dropped to their lowest level since early May during Monday’s session amid worries that prolonged U.S.–China trade tensions could dampen economic growth, coupled with the International Energy Agency’s outlook for a supply glut in 2026.
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