A cautious trend continues in European stock markets after Christmas.

General Overview of European Markets

European stock markets continue to follow a negative trend despite the positive news flow regarding the geopolitical situation after the Christmas holiday, driven by increasing caution among investors. As of 11:45 AM, the Stoxx Europe 600 index has decreased by 0.1%, falling to 588.4 points.

Effects on Market Indices

Germany's DAX 40 index has decreased by 0.1%, dropping to 24,307 points, while in the UK, the FTSE 100 index is trading close to its previous close at 9,868 points. In France, the CAC 40 index has decreased by 0.1% to 8,099 points, and Italy's FTSE MIB 30 index is down by 0.3%, settling at 44,458 points. Spain's IBEX 35 index is trading below its previous close, standing at 17,165 points.

Notable Developments in Global Markets

In global markets, the past week saw limited trading volume and cautious investor sentiment due to the Christmas holiday, while this week is expected to have a calm data flow. Investors' eyes will be on geopolitical developments as well as significant economic data from the US.

Peace Talks Between US and Ukraine Leaders

On the other hand, the meeting between the US President and the Ukrainian President is seen as a promising development in efforts to reduce geopolitical tensions in the region. President Trump stated that the discussions held at his estate in Mar-a-Lago were highly productive and that “we have made significant progress in ending the largest war since World War II.” Zelenskyy indicated that all aspects of the peace plan were discussed in detail.

Data Being Monitored by Investors

Analysts note that in addition to the geopolitical developments in the region, US housing sales and Dallas Fed manufacturing data expected later in the day will also be monitored. These data are thought to potentially influence market volatility.