Investing.com – European stock markets were slightly lower on Monday, with activity likely to be restrained ahead of the inauguration of US President-elect Donald Trump later in the session.

At 03:05 ET (08:05 GMT), those in Germany were up 0.1%, those in France gained 0.3%, and those in the UK were trading 0.1% higher.

Trump’s inauguration seems big

The main focus on Monday will be the inauguration of Donald Trump later on Monday as the 47th president of the US, with trading ranges and volumes likely to be affected, especially with the US markets closed for Martin Luther King Jr. Sun.

This is his second term in office, and equities generally rallied after his election victory in November, as investors bet on deregulation and lower taxes.

There is also a sense of uncertainty after Bloomberg reported that Trump was preparing to declare a national emergency to give him new powers to carry out his agenda.

Trump said he would sign nearly 100 executive orders within hours of taking office and, at a rally Sunday, repeated pledges to deport immigrants, cut regulations and free up resources. of energy.

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 kicked off in Davos, Switzerland, this week, with political and business leaders gathering to discuss a range of topics, including how to increase economic growth.

Trump is scheduled to address the meeting via 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, Chancellor of the UK Rachel Reeves and Vice Premier Ding Xuexiang of China.

German PPI is below expectations

rose below expectations in December, up 0.8% on the year, below the 1.1% increase expected.

It has cut interest rates four times since June and is expected to continue doing so for the next six months, which has seen eurozone inflation fall from double digits in late 2022 to just above of the 2% target.

The People’s Bank of China left its benchmark unchanged on Monday, a move widely expected by markets, with both rates remaining at record lows.

Beijing is likely to remain dry in anticipation of further clarity on Trump’s plans for trade tariffs.

Some income reports

In corporate news, earnings from major companies were less likely to melt in Europe Monday.

The reporting season kicked off last week on Wall Street, with major banks reporting higher earnings, fueled by a surge in deal-making and strong equity market performance that boosted trading profits. .

Crude oil went down

Oil prices fell lower on Monday, with traders taking risks off the table ahead of Donald Trump’s inauguration.

At 03:05 ET, US crude futures (WTI) fell 0.1% to $77.33 a barrel, while the contract fell 0.1% to $80.68 a barrel.

Trump is set to take office later Monday, and is widely expected to make a series of policy announcements soon after. This could include relaxing curbs on Russia’s energy sector in exchange for a deal to end the war in Ukraine.

Oil is up 10% so far this month, amid concerns about the impact of massive Western sanctions on Russian crude.