European stock markets steadied on Monday after a mixed performance in Asia, as investors awaited fresh clues on the outlook for U.S. interest rates. The dollar generally rose against its main rivals, precious metals retreated from record highs, and oil prices firmed in quiet post‑Christmas trading.
The Federal Reserve’s decision to lower borrowing costs earlier in December has sparked speculation about future cuts. The central bank has signaled that it may maintain its current stance when it meets again at the end of next month. Minutes from the last meeting, to be published on Tuesday, will be closely scrutinized for any hints about the Fed’s plans for 2026. The prospect of rate cuts has helped world stock markets reach multiple record highs this year, offsetting concerns about valuations in the tech sector. Victoria Scholar, head of investment at Interactive Investor, warned that “concerns about overvaluations and an AI bubble are likely to continue dominating market chatter into next year.”
In commodities, gold and silver slipped after hitting all‑time peaks in recent days. Strong buying, driven by expectations of further rate cuts, had made precious metals attractive to investors, while geopolitical tensions—including U.S. strikes in Nigeria and a blockade of Venezuelan oil tankers—boosted their safe‑haven appeal. On Monday, gold traded around $4,450 an ounce, down from a near‑$4,550 peak on Friday. Silver fell to $75.64 an ounce after touching a record above $84, following a sharp run‑up fueled by surging demand and tight supply.
Oil prices rose by about 2 % on Monday after falling more than 2 % on Friday. The increase came as investors watched a weekend meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky on peace proposals. Trump said a deal to end Russia’s invasion of Ukraine was “closer than ever,” though no breakthrough on territorial issues was reported. An end to the war could lift sanctions on Russian oil, adding to an already oversupplied market.
Key market figures around 11:30 GMT showed the FTSE 100 up 0.1 % at 9,878.07 points, the CAC 40 gaining 0.1 % to 8,109.63, and the DAX slipping 0.1 % to 24,326.23. In Asia, the Nikkei 225 fell 0.4 % to 50,526.92 and the Hang Seng Index dropped 0.7 % to 25,635.23. The euro traded down at $1.1762, and the pound at $1.3496. Brent North Sea Crude rose 2.0 % to $61.90 per barrel, while West Texas Intermediate gained 2.2 % to $57.97 per barrel.
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