European stocks edged higher Monday at the start of the last full trading week of the year, which includes several central bank policy decisions as well as a slew of delayed U.S. economic data releases.

At 03:05 ET (08:05 GMT), the DAX index in Germany climbed 0.4%, the CAC 40 in France gained 0.4% and the FTSE 100 in the U.K. rose 0.5%. 

ECB leads central bank parade

The decision of the U.S. Federal Reserve last week to cut interest rates by a quarter-percentage point has boosted global sentiment moving towards the end of the year.

But gains are limited Monday at the start of a week strewn with risk events, including policy decisions from the European Central Bank and the Bank of England, as well as persistent concerns over a real estate meltdown in China.

The ECB meets on Thursday, and is widely expected to hold its key rate at 2% for a fourth straight meeting. Traders will be looking to see if the policymakers signal a rate hike could be on the cards in 2026, given recent data has shown the economy grew 0.3% in the third quarter, much faster than the ECB had forecast in September.

The Bank of England’s decision is more uncertain, with Governor Andrew Bailey expected to change his view and tip the balance for a 5-4 vote to lower the central bank’s benchmark rate to 3.75% from 4.0%.

Other central banks, including the Riksbank and the Norges Bank, will also hold their last monetary policy decisions for 2025 this week. 

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Nonfarm payrolls due this week

The week also includes the release of a number of delayed economic data releases in the U.S., including October retail sales and the key November jobs report.

Fed chair Jerome Powell made it clear in the press conference that accompanied the last FOMC meeting that future interest rate decisions will be data dependent, and this data will be closely watched.

In Europe, investors will also digest PMI activity data for December, as well as consumer inflation numbers for both the eurozone and the U.K..

Earlier in the session, Chinese industrial production and retail sales grew less than expected in October, while fixed asset investment– a key gauge of business spending– shrank at an outsized pace.

The prints raised more doubts over slowing growth in the world’s second-largest economy, and likely put more pressure on Beijing to dole out economic stimulus.

Concerns over a debt crisis in China’s property market also remained in play, especially after state-backed developer China Vanke failed to win debtholder approval to delay payments on an onshore bond maturing on December 15.

Sanofi drug fails Phase 3 trial 

In the corporate sector, the European earnings season has largely ended, Sanofi (EPA:SASY) will be in the spotlight after the French healthcare company said that its experimental drug tolebrutinib failed to meet its primary endpoint in a Phase 3 clinical trial for primary progressive multiple sclerosis.

Additionally, Hikma Pharmaceuticals (LON:HIK) announced that Riad Mishlawi has stepped down as Chief Executive Officer and from the company’s Board of Directors by mutual agreement.

Crude rebounds after weekly loss

Oil prices edged higher Monday, rebounding to a degree from the previous week’s sharp losses as traders digested the prospect of disruptions to global supply from escalating U.S.-Venezuela tensions as well as a potential Russia-Ukraine peace deal.

Brent futures climbed 0.4% to $61.34 a barrel, and U.S. West Texas Intermediate crude futures rose 0.4% to $57.46 a barrel.

Both benchmarks slid more than 4% last week, driven largely by fears that global crude supply is outstripping consumption growth.