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European stocks are expected to start the new trading week in positive territory, although investors will be looking to see if global market volatility continues.

The U.K.’s FTSE 100 index is expected to open 21 points higher at 8,653, Germany’s DAX up 90 points at 23,019, France’s CAC 9 points higher at 8,034 and Italy’s FTSE MIB 182 points higher at 38,819, according to data from IG. 

There are no major earnings releases on Monday; on the data front, however, Italy will publish its latest inflation print.

European markets ended the week higher Friday after German lawmakers reportedly came closer to agreeing on reforming the country’s so-called debt brake rule. Media reports said Germany’s likely next chancellor Friedrich Merz had won support from the Greens party to hike public borrowing to allow an increase in defense spending.

The motion, which requires a change to the German Constitution, needs backing from two-thirds of the lawmakers elected to the country’s parliament. The Bundestag is expected to vote on the debt reform on Tuesday.

Investors will be keeping a close eye on U.S. markets this week after the Dow posted its worst week going back to 2023 last week, with investors grappling with President Donald Trump’s fast-changing tariff policies, on top of growing signs of economic weakness.

The uncertainty has many wondering whether the stock market correction could turn into a bear market. U.S. stock futures fell early Monday, signaling the pessimism could continue into this week.

Asia-Pacific markets mostly climbed overnight, with investors keeping a close watch on Chinese equities after the Chinese government announced a “Special Action Plan to Boost Consumption” to revive consumption by boosting incomes.

Other measures announced on Sunday included plans to stabilize the stock and real estate market and raising the country’s birth rate.