European stocks set to start the week higher, following global market positivity

LONDON — European stocks are expected to start the new trading week on a positive note, following their global counterparts higher as hopes resurface for a Fed rate cut in December.

The U.K.’s FTSE index is seen opening 0.55% higher, Germany’s DAX up 0.8%, France’s CAC 40 up 0.76% and Italy’s FTSE MIB up 0.72%, according to data from IG.

Asia-Pacific markets and U.S. stock futures climbed in overnight trading Sunday as the market sought to build on a strong rebound that started on Friday, after the head of the New York Federal Reserve left the door open to a December interest rate cut.

The Fed’s next meeting will take place on Dec. 9-10 and markets are currently pricing in a 69.3% chance of a quarter-percentage-point cut, according to the CME FedWatch tool.

Global markets have had a tumultuous few weeks as investors questioned the sky-high valuations of artificial intelligence-linked tech names that have powered much of 2025′s market gains.

There are no major data or earnings releases in Europe on Monday but investors in the U.K. are gearing up for the Autumn Budget on Wednesday, with speculation mounting over the depth and breadth of tax hikes that British Finance Minister Rachel Reeves could unveil as she tries to balance the budget.

Investors in the region are also keeping an eye on talks between the U.S. and Ukraine to craft a peace plan after an initial 28-point proposal was seen as largely pro-Russian and demanding significant concessions from Kyiv.

The U.S. said Sunday that there had been progress in talks at the weekend, which were attended by U.S. Secretary of State Marco Rubio, but that no agreement was reached on security guarantees for Ukraine.