Lights on in skyscrapers and commercial buildings on the skyline of the City of London, UK, on Tuesday, Nov. 18, 2025. U.K. business chiefs urged Chancellor of the Exchequer Rachel Reeves to ease energy costs and avoid raising the tax burden on corporate Britain as she prepares this year’s budget.
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LONDON — European stocks began the new trading week in negative territory as investors weigh geopolitical developments in Iran, and renewed pressure on Federal Reserve Chair Jerome Powell.
The pan-European Stoxx 600 index was almost 0.2% lower shortly after the opening bell, with major bourses and sectors mainly in the red.
The U.K.’s FTSE index opened 0.26% lower with Germany’s DAX down almost 0.1%. France’s CAC 40 was down 0.25% and Italy’s FTSE MIB dropped 0.38%.
Market watchers will be keeping an eye on the developments in Iran this week after widespread protests were met with a violent crackdown by the Iranian authorities. U.S. President Donald Trump is weighing options to take action against Iran, according to multiple reports on Sunday.
The president has been shown potential plans, ranging from possible military strikes to action that doesn’t include the military, according to MS Now and other media outlets, citing U.S. officials.
Trump aides are reportedly set to brief the president Tuesday on measures, including military, cyber and economic, to follow through on his threats.
In other news, U.S. Stock futures fell overnight after the Department of Justice opened a criminal investigation into Federal Reserve Chair Jerome Powell in an apparent escalation by Trump in his attempt to pressure the central bank.
Powell confirmed in a video statement Sunday evening that federal prosecutors have opened a criminal investigation related to his Senate Banking Committee testimony on the renovation of Fed office buildings.
Powell said the investigation was another attempt by Trump to influence the central bank’s monetary policy and he would not bow to the pressure. His term as chair due to end in May.
There are no major earnings or data releases in Europe on Monday.
— CNBC’s Jennifer Elias, John Melloy and Yun Li contributed to this market report.
