European markets set to start the week on a somber note
CNBC·2026-01-12 06:21

Group 1 - European stocks are expected to start the new trading week in negative territory due to geopolitical developments in Iran and pressure on Federal Reserve Chair Jerome Powell [1][2] - The U.K.'s FTSE index is projected to open 0.13% lower, Germany's DAX is also expected to decline, while France's CAC 40 is flat and Italy's FTSE MIB is down 0.26% [2] - Market watchers are focused on the situation in Iran, where widespread protests have been met with a violent crackdown by authorities, prompting U.S. President Donald Trump to consider various actions against Iran [2][3] Group 2 - U.S. stock futures fell after the Department of Justice opened a criminal investigation into Federal Reserve Chair Jerome Powell, escalating tensions between Trump and the central bank [4] - Powell confirmed the investigation is related to his Senate Banking Committee testimony and stated it is an attempt by Trump to influence monetary policy [4][5] - Powell's term as chair is set to end in May, and he has indicated he will not succumb to pressure from the administration [5]