European markets muted with trade, earnings, and central bank decisions in focus

Investing.com - European stock markets hovered around the flatline on Monday, as investors gauged potential trade negotiations between the U.S. and China as well as upcoming corporate earnings and central bank decisions this week.

By 04:09 ET (08:09 GMT), the pan-European Stoxx 600 had edged up by 0.1% and the DAX in Germany had gained 0.6%. Meanwhile, the France’s CAC 40 slid by 0.4%. Markets in London were shuttered for a bank holiday.

U.S. President Donald Trump said on Sunday that he had no plans to speak with Chinese President Xi Jinping this week, although he noted that U.S. officials had been in contact with Beijing.

Recent speculation has revolved around any possible discussions between the U.S. and China, with the world’s two largest economies slapping tariffs on one another that threaten to heavily weigh on trade flows. Trump has placed duties of 145% on China, leading to retaliatory tariffs of 125% from China.

Speaking on Air Force One on Sunday, Trump said he was in talks with China and a selection of other countries about trade deals. But he added that his main priority was to finalize an agreement with Beijing, who has become one of the central targets of his push to roll out elevated tariffs during the early months of his second term in the White House.

Chinese officials have said that they are "evaluating" an offer from Washington to discuss the matter, but told the U.S. that it should not engage in "extortion and coercion".

Elsewhere, the Federal Reserve is broadly expected to leave interest rates unchanged at its upcoming meeting this week, despite ongoing pressure from Trump to slash borrowing costs. In an interview over the weekend, Trump called Fed Chair Jerome Powell a "stiff".

In individual shares, Amsterdam-listed shares in Shell (AS:SHEL) ticked down on a report that the oil giant was mulling a possible purchase of rival BP (LON:BP)  (NYSE:BP).

The U.S. Food and Drug Administration has also accepted a marketing application for an oral version of Novo Nordisk (CSE:NOVOb) (NYSE:NVO)’s blockbuster Wegovy weight-loss drug, sending shares in the Danish pharmaceutical group higher.

Erste Group (VIE:ERST) and Spain’s Banco Santander (BME:SAN) have agreed to a deal that will see the Austrian bank acquire 49% of Poland-based Santander Bank Polska and half of Santander TFI. Shares in Erste Group climbed.