European futures indicate a positive start for markets on Monday, with investors taking time to process insights from the recently concluded Munich Security Conference. Stoxx 50 Futures are anticipated to open nearly 0.1% higher. Specifically, in London, the FTSE 100 is projected to rise by 0.159%, while Germany’s DAX is expected to gain 0.26%. France’s CAC 40 is also set to increase by 0.22%, according to data from IG. This follows a dip in regional shares on Friday, where the Stoxx 600 ended the day down 0.13%.
The Munich Security Conference highlighted the increasing significance of geopolitics and defense, prompting discussions among European leaders and policymakers about boosting defense budgets to enhance the continent’s strategic autonomy. A common nuclear shield was also a focal point of the discussions.
Amid these unfolding events, U.S. Secretary of State Marco Rubio adopted a more conciliatory tone towards European allies during his address at the conference. In contrast, German Chancellor Friedrich Merz pointed out a “deep divide” within the transatlantic relationship, asserting that the post-World War Two rules-based order is “no longer” in effect.
Ukrainian President Volodymyr Zelenskyy also took the stage at the MSC, expressing optimism that Ukraine could be prepared for European Union membership by 2027. He urged that any peace negotiations with Russia should include a definitive timeline for accession to the EU.
In the corporate sphere, investors are set to receive updates on the financial performance of BHP Group, a major player in the mining and metals industry, on Monday. Additionally, other prominent companies such as Airbus, Nestlé, and Renault are expected to report their earnings later in the week.
In Asia, Japan’s Nikkei index rose by 0.2% as the country reported a modest economic growth rate of 0.2% annualized for the December quarter, falling short of the anticipated 1.6%. Trading activity was subdued in the region, particularly in China, South Korea, and Taiwan, where markets remained closed for the Lunar New Year holiday.
Meanwhile, U.S. stock markets will be closed on Monday in observance of Presidents’ Day, leaving investors with a quieter day ahead in North America.
