European markets opened the week cautiously on Monday as investors awaited the Federal Reserve’s key policy decision due midweek.
The Stoxx 600 index edged slightly lower, reflecting a cautious mood ahead of the U.S. central bank’s expected 25 basis-point rate cut, which traders currently see as having an 87% chance according to the CME FedWatch tool.
This Fed move is likely to influence other major central banks preparing for their year-end meetings. The Swiss National Bank will announce its decision Thursday, while the Bank of England and European Central Bank will reveal theirs on December 18.
The BoE’s stance remains uncertain amid mixed UK economic signals, whereas the ECB is generally expected to hold rates steady. Meanwhile, the Bank of Japan will conclude its policy discussions on December 19, likely maintaining its accommodative approach.
Unilever’s ice cream division began trading independently on Monday as Magnum Ice Cream Company, featuring brands like Magnum and Ben & Jerry’s. Its reference price on the Amsterdam exchange was €12.80, with London and New York secondary listings opening simultaneously. Unilever’s shares dropped about 3% early on.
Germany’s industrial production figures, due today, will provide insight into Europe’s largest economy.
In Asia-Pacific, markets were mixed after China reported stronger-than-expected export growth in November. U.S. futures showed little change as investors awaited the Fed’s announcement, following recent data indicating softer-than-expected inflation.
With the Fed’s decision imminent, markets remain alert to its impact on global interest rates and economic outlooks for 2026.