European stocks are seen opening lower on Monday, tracking mixed Asian cues and weak oil prices after German Chancellor Angela Merkel reportedly said the eurozone could cope with a potential Greek exit if that proved to be necessary. Greece faces a general election at the end of January, with the anti-austerity party Syriza on course to win the snap election, according to a new poll.
While the euro fell to an almost nine-year low versus the dollar, Brent crude futures fell nearly 2 percent to as low as $55.36 a barrel, its lowest level since May 2009, following lackluster manufacturing surveys released across Europe and Asia last week. The dollar strengthened against all major currencies except the safe-haven Japanese yen.
The Asian markets are trading mixed, with Japanese shares declining modestly on the first trading day of the year, while Chinese shares extended recent sharp gains on hopes of more stimulus. China's Shanghai Composite index is up more than 3 percent, hitting a five-year high, amid continued hopes the government will unveil further monetary easing to boost the economy.
In economic releases, Eurozone investor confidence and German consumer price data are slated for release in the European session. The Eurozone Sentix confidence index is expected to rise to -1 in January from -2.5 in December, while German consumer prices are seen growing 0.3 percent year-over-year in December after a 0.6 percent rise in November.
Investors also await U.K. construction purchasing manager's index (PMI) data for December due later today and U.K. Services PMI figures scheduled for tomorrow ahead of the Bank of England's monetary policy announcement on Thursday.
Across the Atlantic, investors eye reports on service sector activity, private sector employment and international trade ahead of Friday's all-important jobs report. Also, the Federal Reserve is scheduled to release the minutes of its latest monetary policy meeting this week, which could shed some light on the outlook for monetary policy.
In corporate news, Henkel is mulling further expansion in the areas of consumer branded goods and hair care and could look at potential takeover targets, the company's chairwoman told German newspaper Welt am Sonntag.
European stocks began the New Year on a grim note Friday as further declines in oil prices and lackluster manufacturing data from the struggling eurozone fueled fears of deflation. The euro fell to its lowest level since June 2010 amid indications the European Central Bank will embark on outright money-printing soon to stimulate the region's economy. The German DAX dropped 0.4 percent, France's CAC 40 shed half a percent and the U.K.'s FTSE 100 eased 0.3 percent.
On Wall Street, the major averages ended mixed showing little change on Friday as disappointing reports on U.S. manufacturing and construction spending offset dovish comments from ECB President Mario Draghi.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.