European markets set to start December in negative territory

Market Overview - European stocks are anticipated to open lower in December, with the U.K.'s FTSE index down 0.26%, Germany's DAX down 0.62%, France's CAC 40 down 0.46%, and Italy's FTSE MIB down 0.5% [1] - Regional markets closed positively on Friday, despite concerns over high AI valuations and uncertainty regarding monetary policy [2] Monetary Policy Expectations - Investors are expecting the U.S. Federal Reserve to cut interest rates during its meeting on December 9-10, with an 87.4% probability of a quarter-point rate cut being priced in [2] Geopolitical Developments - European investors are closely monitoring the peace negotiations for Ukraine, with U.S. Special Envoy Steve Witkoff engaging in talks with Russian President Vladimir Putin [3] - Ukraine has tentatively approved a U.S.-backed 19-point peace plan, which is a revised version of an earlier 28-point plan [3] Economic Data Insights - Asia-Pacific markets started December mixed, influenced by new manufacturing data from China indicating an unexpected contraction in factory activity for November [4] U.S. Market Sentiment - U.S. stock futures remained stable following a strong week, with December historically being a favorable month for the S&P 500, averaging over a 1% increase [5]