Traders work on the floor of the New York Stock Exchange (NYSE) on November 21, 2025 in New York.
Angela Weiss | AFP | Getty Images
LONDON — European stock markets opened slightly higher on Tuesday as regional markets followed Wall Street’s recovery earlier in the week.
pan-european Stocks 600 The stock rose 0.14% after the opening bell, with most sectors and major exchanges in positive territory.
The move came after major U.S. stock averages rebounded on Monday, boosted by strong artificial intelligence trade and renewed expectations for Federal Reserve interest rate cuts. Markets in Asia-Pacific also rose overnight, supported by gains on Wall Street.
Traders continue to monitor news that could impact the Fed’s future monetary policy decisions. Markets are pricing in a more than 80% chance that the Fed will cut interest rates by a quarter of a percentage point in December, according to the CME FedWatch tool.
That possibility has increased since New York Fed President John Williams said last Friday that there was room for rate cuts “in the near term.” San Francisco Fed President Mary Daly told the Wall Street Journal on Monday that she supports lowering rates, citing concerns about the labor market.
Securities company
Dutch financier in company news ABN AMRO announced Tuesday that it will cut 5,200 jobs by 2028 in a bid to streamline operations and reduce costs. The bank also announced in an update ahead of its capital markets day that it had agreed to sell its personal loans subsidiary Alpham to Rabobank. ABN AMRO stock was most recently trading up 3.7%.
On the other hand, British low-cost airlines easyjet announced on Tuesday that its full-year operating profit exceeded expectations. The company’s shares rose 0.3% in early morning trading.
Regional defense stocks have been volatile over the past week as the US continues to press for progress on the Ukraine peace deal. The sector saw a modest recovery on Tuesday after two consecutive sessions of sharp declines. Defense stocks with the biggest gains in early trading included German ones. Lenkan increase of 5.2%, and line metalincreased by 2%.
On Monday, European Union leaders met to discuss a 28-point peace plan originally drafted by American and Russian officials without input from Ukraine or other European countries. Under the preliminary draft, Ukraine would reportedly have to make significant concessions to Russia to end the war, including handing over land it captured after a full-scale invasion and reducing its military.
European Commission President Ursula von der Leyen said in a statement after the meeting that Europe plays a central role in shaping Ukraine’s future.
“These are the core principles of Europe in the future. Ukraine’s territory and sovereignty must be respected,” he said. “Only Ukraine, as a sovereign state, can make decisions regarding its military, and the choice of its destiny is in their own hands.”
He added that talks between the so-called coalition would continue on Tuesday.
British investors are also gearing up for Wednesday’s Autumn Budget, where British Chancellor Rachel Reeves is expected to announce a raft of tax increases.
— CNBC’s Pia Singh contributed to this market report.
