Investing.com – European stock markets rose slightly on Monday, with activity likely to decline ahead of US President-elect Donald Trump's inauguration later in the session.
At 03:05 ET (08:05 GMT), the index in Germany rose by 0.1%, in France by 0.3%, and in the United Kingdom it rose by 0.1%.
Trump's inauguration looms
The main focus on Monday will be on the inauguration of Donald Trump later Monday as the 47th President of the United States, with trading ranges and volumes likely to be affected, especially with US markets closed due to Martin Luther King Jr. day.
This will be his second term in office, and stocks mostly rose after his election victory in November, as investors bet on deregulation and tax cuts.
There is also a sense of uncertainty after Bloomberg reported that Trump is preparing to declare a national emergency to give him new powers to enact his agenda.
Trump said he would sign nearly 100 executive orders within hours of taking office, and during a rally on Sunday he repeated his pledges to deport immigrants, scale back regulations and unleash energy resources.
Investors also fear Trump could signal higher trade tariffs against China and other major economies, including the European Union.
Back in Europe, the World Economic Forum kicks off in Davos, Switzerland, this week, where political and business leaders will meet to discuss a wide range of topics, including how to increase economic growth.
Trump is scheduled to address the meeting via video link on Wednesday, while other world leaders are scheduled to attend, including European Central Bank President Christine Lagarde, European Commission President Ursula von der Leyen, British Chancellor Rachel Reeves, and China's Vice Premier. Ding Xuexiang.
German producer price index is below expectations
It rose less than expected in December, rising 0.8% year over year, less than the expected 1.1% increase.
It has cut interest rates four times since June, and is expected to continue doing so in the next six months, after seeing euro zone inflation fall from double digits in late 2022 to just above its 2% target.
The People's Bank of China left its benchmark index unchanged on Monday, a move that was widely expected by markets, with both rates remaining at record lows.
Beijing is likely to hold its ground in anticipation of more clarity on Trump's plans on trade tariffs.
Few earnings reports
In corporate news, there are a few major corporate earnings to digest in Europe on Monday.
Reporting season kicked off last week on Wall Street, with major banks reporting higher profits, fueled by an increase in deal making and a strong stock market performance that boosted trading revenues.
Crude oil is sliding down
Oil prices fell on Monday, with traders reluctant to take risks ahead of Donald Trump's inauguration.
By 03:05 EST, US crude futures (WTI) were down 0.1% at $77.33 per barrel, while the contract was down 0.1% at $80.68 per barrel.
Trump is scheduled to take office later Monday, and is widely expected to make a series of policy announcements almost immediately. This could include easing restrictions on the Russian energy sector in exchange for an agreement to end the war in Ukraine.
Oil has risen by 10% since the beginning of this month, amid concerns about the impact of more Western sanctions on Russian crude.
