A look at the day ahead in European and global markets from Ankur Banerjee
While stock markets shrugged off the dim start to 2025, the higher-for-longer U.S. rates theme has left the dollar’s dominance intact, leaving the euro and sterling near multi-month lows.
Beyond the worries of the U.S. central bank’s measured rate cut path for 2025, investors are also grappling with how President-elect Donald Trump’s policies will play out regarding inflation, growth and tariffs.
European stock markets are set for a mellow open after Asian equities ended the week on a high, buoyed by South Korean shares. Japan remains closed for a holiday.
Focus will be on whether the pan-European index can build on its steady start to 2025 after clocking a 6% rise last year.
European markets and the euro have been hampered in the past few months by uncertainty around diverging interest rate paths for Europe and the United States as well as the political quagmire in France and Germany.
The threat of tariffs from the incoming Trump administration has also weighed on sentiment.
That has left the euro wallowing at lev