European stock markets edged slightly higher Monday, with activity curtailed ahead of the inauguration of US President-elect Donald Trump later in the session.

At 06:30 ET (11:30 GMT), the DAX index in Germany climbed 0.1%, the CAC 40 in France gained 0.1%, and the FTSE 100 in the UK traded 0.1% higher.

Trump’s inauguration looms large

The main focus Monday will be on Donald Trump’s inauguration later on Monday as the 47th US president, with trading ranges and volumes likely to be impacted, especially with the US markets closed for the Martin Luther King Jnr. Day.

This will be his second term in office, and equities mostly rallied after his November electoral victory, as investors bet on deregulation and lower taxes.

There is also a sense of uncertainty after Bloomberg reported that Trump is preparing to declare a national emergency to grant him new powers to enact his agenda.

Trump said he will sign nearly 100 executive orders within hours of taking office and, at a rally on Sunday, repeated vows to deport immigrants, slash regulations and unleash energy resources.

Investors are also wary that Trump will signal higher trade tariffs against China and other major economies, including the European Union. 

Back in Europe, the World Economic Forum starts in Davos, Switzerland, this week, with political and business leaders getting together to discuss a wide range of topics, including how to increase economic growth.

Trump is set to address the meeting by video link on Wednesday, while other global leaders are due to attend, including European Central Bank President Christine Lagarde, European Commission President Ursula von der Leyen, UK Chancellor Rachel Reeves and China’s Vice Premier Ding Xuexiang.