European markets set to start the new trading week on a somber note

Market Overview - European stocks are expected to open the new trading week on a slightly negative note, with the U.K.'s FTSE index projected to decline by 0.13%, Germany's DAX and France's CAC 40 also expected to be lower, and Italy's FTSE MIB down by 0.2% [1][2] Investor Sentiment - The pessimistic mood among regional stocks follows a troubled week for European markets, where regional bourses closed sharply lower due to concerns about an artificial intelligence bubble and the global economy, which have shaken investor confidence [2] Federal Reserve Influence - Recent comments from U.S. Federal Reserve officials have led investors to reassess the likelihood of a rate cut in December, with current market pricing indicating a 56.1% chance that the Fed will maintain rates at its next meeting, a significant drop from a 95% probability a month ago [3] Market Dynamics - In the U.S., stock futures remained relatively unchanged after a volatile week characterized by valuation fears, market rotation, and adjustments to Federal Reserve rate cut expectations, which have impacted the artificial intelligence sector [4] Regional Market Reactions - Asia-Pacific markets exhibited mixed trading patterns as investors evaluated rising tensions between Japan and China, particularly after Beijing issued warnings to its citizens regarding travel and study plans in Japan [4]