FX.co ★ European Shares Poised to Open Lower

European equity markets were poised to open with slight declines on Monday, taking a breather following last week's gains, as trading enters a shortened week due to the upcoming Christmas holiday. Trading volumes are anticipated to be light, which may lead to limited market movements despite a broadly favorable global environment. Investor confidence remains buoyed by renewed optimism surrounding AI-related stocks and the expectation that the Federal Reserve will have more room to ease policies next year, along with diminished expectations for an ECB rate hike in 2026. Meanwhile, investors are keeping a close watch on the ongoing developments in the Ukraine conflict, particularly after a Kremlin advisor stated that European and Ukrainian modifications to US peace proposals have not enhanced prospects for ending the conflict. On the economic data front, the final reading of the UK’s third-quarter GDP is scheduled for release later today. In pre-market activities, futures for the Euro Stoxx 50 and Stoxx 600 indices were down by 0.2% and 0.1%, respectively.