European markets opened in negative territory on Monday, with investors in the region gearing up for a busy period of earnings and the European Central Bank’s latest interest rate decision.
The Stoxx 600 index opened 0.7% lower, after notching a 1.2% weekly gain. Sectors were mixed, with telecom up 0.6% as technology shares plunged 4.3%.
Weak tech performance was mirrored in Asia markets and Wall Street futures, as the success of Chinese artificial intelligence startup DeepSeek sparked concerns over incumbent U.S. giants’ global leadership in AI.
Shares of European chip firms ASML and ASM International dropped 8.4% and 11.6%, respectively.
On Thursday, the euro zone and core European economies France and Germany will report their latest growth data, and the European Central Bank and the U.S. Federal Reserve will be closely watched as they announce their latest monetary policy decisions.
Overnight in the Asia-Pacific region, Japan and Hong Kong markets traded mostly higher as investors assessed China’s manufacturing and industrial profit data.
U.S. stock futures fell early Monday as investors look ahead to a major earnings week, with four out of seven companies in the “Magnificent Seven'” set to post quarterly earnings: Meta Platforms, Microsoft and Tesla each report on Wednesday, and Apple will release results on Thursday.
Europe stocks open lower as global tech stocks tumble on China competition fears
Europe’s regional Stoxx 600 index was 0.69% lower at 8:30 a.m. London time, with Germany’s DAX index falling 1.2%.
Stoxx 600 index.
Technology was the worst-performing sector, down 4%, as artificial intelligence firms retreated around the world on concerns over competition from China’s DeepSeek.
Nigel Green, CEO of financial advisory deVere Group, said DeepSeek’s newly launched AI model had been reported to be more cost-effective while running on less advanced chips than tools such as OpenAI’s ChatGPT.
“Deepseek is going to challenge Silicon Valley’s leadership, disrupting the global tech landscape and reshaping the direction of the AI arms race,” Green said in emailed comments.
“The launch of this innovation underscores a historic pivot in the balance of technological power.”
— Jenni Reid
Ryanair cuts passenger traffic goal again on Boeing delays
Budget airline Ryanair on Monday cut its passenger traffic goal for the fiscal year to the end of March 2026 once again, citing prolonged Boeing delivery delays.
The firm also reported stronger-than-expected after-tax profit for the December quarter, noting marginally higher fares because of stronger Christmas and New Year bookings.
“I’d be optimistic into next year. Bookings are very strong into the summer, although it is just too early to call where they may go,” Ryanair CFO Neil Sorahan told CNBC’s “Squawk Box Europe” on Monday.
“Disappointed that we’re not going to hit the traffic numbers that we would have hoped,” he added.
— Sam Meredith
Gold gains 1% to trade near record highs
Nuthawut Somsuk | Istock | Getty Images
Spot gold rose 1% to $2,781.66 per ounce on Friday to trade at its highest level since Oct. 31, when gold prices hit a record high of $2,790.15.
Gold’s climb back to its all-time highs came on the back of Trump’s comments at the World Economic Forum for lower interest rates. Uncertainty around the strictness of Trump’s tariffs and whether the U.S. president will ultimately settle for a trade deal with China also contributed to the rally in gold prices.
Gold is traditionally used as a safe-haven asset that investors flock to during times of political and economic volatility.
— Lisa Kailai Han
Microsoft, Apple, Starbucks, Boeing among names set to report this week
Roughly 90 S&P 500 companies are due to post their latest quarterly figures.
Here’s your earnings calendar for the week:
- Monday: AT&T, Nucor
- Tuesday: Starbucks, Boeing, Lockheed Martin, Royal Caribbean Group, Kimberly-Clark, General Motors, RTX, Synchrony Financial
- Wednesday: ServiceNow, International Business Machines, Meta Platforms, Lam Research, Western Digital, Tesla, Microsoft, Hess, Corning, T-Mobile, Norfolk Southern, Raymond James Financial, Automatic Data Processing
- Thursday: Baker Hughes, Apple, Visa, Deckers Outdoor, Intel, PPG Industries, KLA, Sherwin-Williams, Altria Group, Comcast, Southwest Airlines, Quest Diagnostics, Valero Energy, PulteGroup, Caterpillar, United Parcel Service, Thermo Fisher Scientific, Tractor Supply, Northrop Grumman, Mastercard, Blackstone, L3Harris Technologies
- Friday: Phillips 66, Colgate-Palmolive, Exxon Mobil, Chevron, AbbVie
Read here for CNBC Pro’s breakdown of some key reports.
— Pia Singh
European markets: Here are the opening calls
European markets are expected to open in negative territory on Monday.
The U.K.’s FTSE 100 index is expected to open 7 points lower at 8,488, Germany’s DAX down 68 points at 21,320, France’s CAC down 36 points at 7,893 and Italy’s FTSE MIB down 173 points at 36,242, according to data from IG.
Earnings come from Ryanair on Monday and data releases include Germany’s Ifo business climate survey.
— Holly Ellyatt
