Europe open: Stoxx up as traders eye global rate calls; Qinetiq slumps

(Sharecast News) - European shares opened higher on Monday as investors eyed interest rate decisions from around the globe this week in the first assessment of the impact of trade policies from the new US administration.

The pan-regional Stoxx 600 index was up 0.21% at 547.90 in early deals. Germany's DAX outperformed with a 0.34 rise, while France's CAC 40 edged ahead by 0.06%.

Traders will be eyeing a raft of decisions from central bankers across the globe this week. With erratic tariff policy making coming from the US administration of President Donald Trump in recent weeks sparking fears of a major trade war, investors have become jittery about then prospect of a "Trumpcession" in the world's biggest economy.

Recessionary fears led to a sell-off on Wall Street last week, spilling over into European markets. US. Treasury Secretary Scott Bessent in an interview broadcast on Sunday said there were "no guarantees" the US would not tip into recession.

"Rarely is one man dominant for financial markets and for central banks, however, Donald Trump's new economic policy means that he is centre stage as we wait to hear from a multitude of central bankers this week," said XTB research director Kathleen Brooks.

Policy announcements are expected from the US, UK, Japan, Switzerland and Sweden, South Africa, Brazil, Russia and China.

"The vast majority of central banks are expected to remain on hold. This week will be the first time that the world's most important central bankers will collectively assess how President Trump's trade policies will impact the global economy," Brooks added.

"We had a preview last week from ECB President Christine Lagarde, who said that there was a lot of uncertainty about the economic outlook, and that maintaining price stability in this 'new era' created by the US will be very hard for central bankers like herself."

Trump's foreign policy will also be in the spotlight this week. He is scheduled to hold a call with Russian President Vladimir Putin on Tuesday over a ceasefire in the war against Ukraine, while he also vowed to keep attacking Yemen's rebel Houthi militia until the Iran-backed group stops attacking commercial shipping in the Red Sea.

The US assaults have pushed up the price of oil, with Brent crude up 0.64%, to $71.03 a barrel and US West Texas Intermediate crude futures also up 0.64% to $67.61 a barrel.

In equity news, shares in UK defence contractor Qinetiq fell 13% as the company said it would take a �140m impairment charge as tough market conditions persisted into the fourth quarter hitting work in its UK intelligence and US sectors, resulting in further delays to a number of contract awards.

Reporting by Frank Prenesti for Sharecast.com