European Shares Seen Lower Amid Heightened Global Uncertainties

European stocks look set to open broadly lower on Monday after all three U.S. benchmark indexes suffered their second straight weekly declines.

U.S. stock futures were trading lower as investors look ahead to a Federal Reserve interest-rate decision and earnings from some of the world’s biggest technology companies.

The Fed is widely expected to keep interest rates on hold after a two-day policy meeting on Wednesday, despite pressure from President Donald Trump to lower borrowing costs.

Fed officials currently remain divided over whether more rate cuts could drive up inflation.

On the earnings front, Microsoft, Meta Platforms, Tesla and Apple will deliver their quarterly earnings results this week that could set the tone for the entire tech sector.

Boeing and General Motors will release their results on Tuesday, while Google parent Alphabet reports on Feb. 4.

Meanwhile, tariff worries returned to the fore after U.S. President Donald Trump threatened to slap a 100 percent tariff on Canadian exports if Ottawa “makes a deal” with China.

However, Canadian Prime Minister Mark Carney clarified that his country has no intention of pursuing a free trade deal with China and that a recent deal with China merely resolved some tariff-quota issues between the two countries.

Tensions between the U.S. and Iran may also keep investors on edge. As U.S. warships head to the region, media reports suggest that Iran’s Supreme Leader Ayatollah Ali Khamenei has reportedly gone underground. Authorities in Iran have unveiled a new mural in a central Tehran square with a direct warning to the United States to not attempt a military strike on the country.

In the United States, the risk of another partial government shutdown is rising after Democratic senators threatened to block a federal funding bill that includes funding for the Department of Homeland Security (DHS).

Statements and protest sentiments among lawmakers emerged following the second shooting death of a civilian by federal agents in Minneapolis.

Asian markets were mixed, with Japan’s Nikkei index falling more than 2 percent as the yen extended gains on heightened alert for authorities intervening in the market – possibly with U.S. assistance.

The dollar started the week on a negative note while oil prices were little changed after climbing more than 2 percent in the previous session.

Gold topped $5,000 an ounce for the first time, rising more than 1 percent to trade above $5,060 an ounce on U.S. government shutdown worries.

U.S. stocks ended mixed on Friday after ending sharply higher over the two previous sessions amid eased Greenland worries.

The mixed performance came as Iran-U.S. tensions escalated and chip maker Intel offered disappointing guidance for its first-quarter revenue.

Investors ignored data that showed a measure of U.S. consumer sentiment rose for a second straight month in January to reach its highest level in five months.

The Dow dipped 0.6 percent, while the S&P 500 inched up marginally and the tech-heavy Nasdaq Composite added 0.3 percent.

European stocks ended little changed on Friday as investors weighed regional PMI data and U.S. President Trump’s renewed threats against Iran.

The pan European Stoxx 600 slipped 0.1 percent to snap a five-week winning run – its longest since May.

The German DAX edged up by 0.2 percent while France’s CAC 40 and the U.K.’s FTSE 100 both finished marginally lower.