FX.co ★ European Markets Set for Subdued Open

European equity markets were set for a subdued opening on Tuesday as investors anticipated an interest rate cut from the US Federal Reserve later this week, amidst growing uncertainties surrounding the rates outlook for 2026. Rising bond yields added pressure on stocks, with the 10-year US Treasury yield approaching its highest levels in three months. In Europe, it's expected that the Swiss National Bank will maintain its policy rate at 0% this week. Meanwhile, European Central Bank’s policymaker Isabel Schnabel expressed confidence in market expectations that suggest the central bank's next action might be a rate hike. On the economic data front, investors are keenly awaiting Germany’s trade figures for October. In premarket trading, futures for both the Euro Stoxx 50 and Stoxx 600 were largely steady to slightly negative.