European equity markets are set to open higher on Monday, building on gains from the previous session as global risk sentiment continues to stabilize after a turbulent selloff. Futures tied to the region’s main benchmarks point to a positive start, with investors encouraged by a broad rebound across equities, precious metals, and cryptocurrencies for a second consecutive day. The improved tone comes as markets brace for a dense week of economic data and corporate earnings on both sides of the Atlantic.

Global Rebound Sets the Tone

The recovery in European futures mirrors a broader improvement in global markets, following sharp moves last week that saw investors rapidly de-risk amid concerns over technology valuations, AI disruption, and liquidity. With much of that selling pressure easing, attention has shifted back to fundamentals and upcoming macro catalysts. In premarket trading, futures on the Euro Stoxx 50 and the Stoxx 600 were both up around 0.4%, signaling expectations of a firmer cash open.

This stabilization is notable given the mixed signals still coming from the U.S., where investors remain sensitive to signs that the economy may be slowing or inflation proving stickier than expected. European markets, by contrast, have so far shown relative resilience, supported by strong performance in financials, luxury goods, and selective industrial names.

Macro Focus Shifts to Data

Beyond the initial bounce, the durability of gains may hinge on a busy macro calendar. In the U.S., investors are preparing for the January jobs report and the latest inflation readings, both of which could influence expectations for Federal Reserve policy over the coming months. Any surprise on either front has the potential to ripple quickly through global markets, including Europe.

Closer to home, attention will turn to key regional indicators. UK GDP figures will offer insight into whether the British economy is managing to regain momentum after a period of stagnation. In the euro area, German wholesale sales data will be watched for clues on demand conditions in Europe’s largest economy, while French unemployment figures will provide a read on labor market resilience amid slowing growth.

Earnings in the Spotlight

Corporate results are also set to play a central role in shaping market direction. A number of high-profile European companies are due to report, including UniCredit, AstraZeneca, BP, Ferrari, and L’Oréal. Together, these results will provide a cross-section of Europe’s banking, healthcare, energy, industrial, and consumer sectors.

Investors are likely to focus less on headline earnings beats and more on forward guidance, particularly around pricing power, margins, and exposure to slowing global demand. In recent weeks, markets have shown little patience for cautious outlooks, even when backward-looking results are solid.

Near Records, But Risks Remain

The Euro Area Stock Market Index recently climbed to around 6,031 points, close to its all-time high of 6,081.9 reached earlier this month. The index is up more than 12% year-on-year, underscoring the strength of the rally despite persistent geopolitical and macroeconomic risks.

Looking ahead, European markets appear positioned to extend gains in the near term, but volatility is unlikely to disappear. With global liquidity still thin and sentiment prone to rapid shifts, investors will be watching whether this rebound develops into a more durable trend or proves another pause in an increasingly choppy market.