Europe's Stock Markets Brace for Uncertainty Amid Economic and Political Tensions

The STOXX 600, Europe's main stock index, opened flat amid political uncertainty in France and upcoming eurozone inflation data. The index faces downward pressure from possible U.S. tariffs and French political issues. Investors are keenly awaiting euro zone inflation data to gauge ECB’s December rate cut possibility.

Europe's stock markets opened on a cautious note, as the STOXX 600 began trading flat amid a tumultuous week marked by political and economic uncertainties. Investors are eagerly anticipating eurozone inflation figures that could influence future decisions by the European Central Bank.

Despite the opening stalemate, the index is on track to achieve a modest monthly gain, even as political instability in France and concerns over potential U.S. tariffs persistently weigh on investor confidence across the continent.

France's political landscape added to the market’s tension as Prime Minister Michel Barnier withdrew plans to increase electricity taxes. This move was seen as a concession to far-right groups. Meanwhile, a notable performance in basic resources, particularly from Anglo American, offered some relief to sectoral indexes.

(With inputs from agencies.)