FX.co ★ European Stocks Set for Lower Open

As European equity markets prepare for the open on Monday, they are expected to decline, influenced by widespread risk aversion in global markets due to rising geopolitical and trade tensions. In recent developments, U.S. President Donald Trump issued a warning that Canada might encounter 100% tariffs if it attempts to negotiate a trade deal with China. However, Canadian Prime Minister Mark Carney has stated that Ottawa currently has no plans to pursue a free trade agreement with Beijing. Additionally, Trump warned of a U.S. aircraft carrier strike group moving towards the Middle East, escalating tensions with Iran. European investors will be focusing on the Ifo Business Climate survey from Germany for January and Spain’s producer price data for December, while no significant corporate earnings are anticipated. In premarket activity, futures for both the Euro Stoxx 50 and Stoxx 600 showed a decrease of approximately 0.1%.