People visit a viewpoint in Greenwich Park, with the financial district of Canary Wharf in the distance, on a sunny but cold day in London, United Kingdom, January 2, 2026.
Henry Nicholls | Afp | Getty Images
LONDON — European stocks were trading flat on Monday.
The pan-European Stoxx 600 The index was hovering around a flat line at 1:45 p.m. in London (8:45 a.m. ET), with exchanges and major sectors mixed.
Geopolitics could continue to determine market sentiment this week as tensions between the United States and Canada resurface.
Canadian Prime Minister Mark Carney said On Sunday, his country does not intend to conclude a free trade agreement with China, according to US President Donald Trump. threat impose 100% tariffs on Ottawa if it signs a trade deal with China.
“Canada is honoring our commitments, our commitments. We have commitments under CUSMA (Canada-United States-Mexico Agreement) not to enter into free trade agreements with non-market economies without prior notification. We have no intention of doing so with China or with other non-market economies,” Carney said.
On the stock markets, Danone Shares lost 2.7% in early afternoon trading after the French multinational food company was forced to recall batches of its infant formula globally after traces of a toxin were recovered.
In the meantime, Ryanair was trading down nearly 2.2% on Monday, after opening in positive territory. The budget airline raised its full-year fare growth forecast to more than 7%, above its target of 1-2 points, as revenue rose 9%.
Airbusmeanwhile, was falling 1.7% as the aircraft manufacturer seeks to confront growing geopolitical challenges. In a note seen by Reuters, the CEO Guillaume Fauray said The year 2026 was marked by “an unprecedented number of crises”. The pan-European aerospace group will publish its results next month.
Elsewhere, gold prices fall new all-time highswith spot price rising 1.7% to $5,069 on Monday, while US Gold Futures were last seen up 1.8% at $5,068.
Asia-Pacific Markets traded mixed on Monday as investors assessed the situation, while US Stock Futures fell overnight as traders prepared for a big week of key earnings reports and a U.S. monetary policy meeting.
More than 90 S&P 500 companies are expected to release quarterly reports this week, including Apple, Meta Platforms, and Microsoft. It’s been a strong earnings season so far, with 76% of companies reporting they beat expectations, according to FactSet.
This week, traders will also turn their attention to the Federal Reserve. The central bank is expected to announce its first policy decision of the year on Wednesday.
With the Fed widely expected to keep its benchmark rate unchanged, Wall Street will be looking for clues as to when Fed officials will cut rates.
— CNBC’s Fred Imbert and David Martin contributed to this market report.
