The Federal Reserve logo is seen on the William McChesney Martin Jr. Building on Sept. 16, 2025 in Washington, DC.

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LONDON — European stocks started the new trading week slightly positive as traders look ahead to the U.S. Federal Reserve’s meeting, more earnings and signs of a rapprochement between Washington and Beijing.

The pan-European Stoxx 600 was up 0.03% at around 8:33 a.m. in London (4:33 a.m. ET).

The U.K.’s FTSE index was last seen trading up 0.04%, while France’s CAC 40 was down almost 0.1%, with Germany’s DAX up 0.1%, and Italy’s FTSE MIB adding 0.4%.

Regional markets had ended last week higher as investors reacted to the latest U.S. inflation print, the only federal data to be released during the ongoing government shutdown, and a flurry of corporate earnings reports.

Novartis fell 1.4% in early trading after the Swiss pharmaceutical giant announced it was buying Avidity Biosciences in a deal worth $12 billion.

Copenhagen-listed bank Sydbank was a strong early gainer on Monday, advancing 6.4% after unveiling plans to merge with Danish lenders Arbejdernes Landsbank and Vestjysk Bank, with the new entity – named AL Sydbank – becoming one of Denmark’s five largest banks.

Barclays meanwhile gained almost 1.2% after Saudi Arabia said it would imminently recognize the U.K. lender’s regional headquarters in the country, with the bank having reportedly received a provisional capital market authority licence to conduct investment banking activities there.

Meanwhile, HSBC‘s shares fell almost 1% as the bank revealed it will book at $1.1 billion provision in its third-quarter earnings due to a court ruling relating to the Bernie Madoff investment fraud case in 2009. HSBC’s earning will be released on Tuesday.

Porsche AG shares gained 3.3% after releasing its third-quarter earnings report late on Friday which showed sales revenues of 26.9 billion euros ($31.3 billion) in the first nine months of the year, down from 28.6 billion in the same period last year.

Galp Energia gained 1.8% as the Portuguese energy company’s third-quarter earnings report showed adjust net profits reaching 407 million euros during the three-month period, outweighing analysts’ estimated 321 million euros.

The U.S.annual inflation rate hit a lower-than-expected 3% in September, prompting a bounce in U.S. stocks amid anticipation that the U.S. Federal Reserve will cut interest rates when it meets this week.

The market is now pricing in a 96% chance of a 25 basis-point rate cut this week, according to the CME Fedwatch tool.

Geopolitics and trade are also at the forefront of investors’ minds this week amid hopes that the U.S. and China can resolve an escalating trade dispute.

President Donald Trump and Chinese President Xi Jinping are scheduled to meet in South Korea on Thursday in an attempt to ease trade tensions, an event that could offer significant clarity and reassurance to investors. The leaders will meet on the sidelines of the Asia-Pacific Economic Cooperation, or APEC, Summit as Trump continues his Asia tour.

U.S. Treasury Secretary Scott Bessent recently indicated that talks between the leaders have been “constructive, far-reaching, in-depth,” which could move the needle on negotiations.

Other earnings in Europe come from Deutsche Boerse on Monday while data releases include the German ifo business climate survey.

CNBC is at the Future Investment Initiative (FII) forum in Riyadh this week which will feature 20 heads of state and more than 600 speakers.

JPMorgan CEO Jamie Dimon, Goldman Sachs Group’s David Solomon, Blackrock’s Larry Fink and Brookfield’s Bruce Flatt will be among the hundreds of bankers, consultants, and tech executives heading to the Kingdom for the three-day event.

— CNBC’s Liz Napolitano contributed to this market report.