On January 2, 2026 in London, England, people visit the observation deck in Greenwich Park on a sunny but cold day with a view of Canary Wharf financial district in the distance.
Henry Nichols AFP | Getty Images
LONDON — European stock markets were flat on Monday.
pan-european Stocks 600 As of 1:45 p.m. (8:45 a.m. ET) in London, the index was mostly flat, with mixed results across major exchanges and sectors.
Geopolitics could continue to shape market sentiment this week as tensions between the US and Canada flare up again.
Canadian Prime Minister Mark Carney said Sunday that his country will not pursue a free trade agreement with China after U.S. President Donald Trump threatened to impose 100 per cent tariffs on Ottawa if it signs a trade deal with China.
“Canada respects our engagement, our commitment. We are committed under CUSMA (Canada-United States-Mexico Agreement) not to pursue free trade agreements with non-market economies without advance notice. We have no intention of doing anything like that with China or any other non-market economy,” Carney said.
In the stock market, Danone Shares fell 2.7% in early afternoon trading after the French multinational food manufacturer was forced to recall lots of infant formula globally after traces of toxins were detected.
meanwhile, ryanair It started Monday in positive territory, trading almost 2.2% lower. The budget airline raised its full-year forecast for fare growth to more than 7%, beating its target by 1 to 2 percentage points, after sales rose 9%.
airbusMeanwhile, aircraft manufacturers fell 1.7% as they try to navigate growing geopolitical challenges. In a memo seen by Reuters, CEO Guillaume Fauré said 2026 was marked by an “unprecedented number of crises”. The pan-European aerospace group is scheduled to announce its results next month.
Elsewhere, gold prices are at new all-time highs. spot price It rose 1.7% to $5,069 on Monday. us gold futures It was last seen at $5,068, up 1.8%.
Asia-Pacific markets traded mixed on Monday as investors assessed the situation, but US stock futures fell overnight as traders awaited key earnings reports and a US monetary policy meeting.
More than 90 S&P 500 companies are scheduled to release their quarterly reports this week. apple, meta platform and microsoft. So far, earnings season has been strong, with 76% of companies reporting beating expectations, according to FactSet.
Traders will also be keeping an eye on the US Federal Reserve this week. The central bank is scheduled to announce its first policy decision of the year on Wednesday.
The Fed is widely expected to keep overnight rates unchanged, but Wall Street is looking for clues as to when Fed officials might cut rates.
— CNBC’s Fred Imbert and David Martin contributed to this market report.
