European Stocks Open Quietly as Year-End Trading Remains Thin

European equity markets were on course for a subdued session on Tuesday, extending a streak of low-volume trading as investors wound down activity ahead of the New Year holiday and awaited fresh policy signals.

After modest gains in the previous session, regional benchmarks struggled for direction, with limited catalysts and lighter participation shaping price action. The pan-European STOXX 600 was little changed in early dealings, reflecting a cautious tone as liquidity remained thin. Even so, the index remains on track to finish the year with a gain of about 18%, despite persistent macroeconomic and geopolitical headwinds.

In London, the FTSE 100 added roughly 10 points, or 0.1%, to 9,876, edging closer to its mid-November record high of 9,930. Mining stocks outperformed, supported by firm precious-metals prices, with Fresnillo rising more than 2%.

In Asia, attention stayed on Japan’s Nikkei 225 after it recently topped the 50,000 level. The index closed down 187.44 points, or 0.4%, at 50,339.48 on Tuesday, though it still logged a strong annual gain of more than 26%.

Looking ahead, investors were awaiting additional clues on the outlook for U.S. monetary policy, with minutes from the Federal Reserve’s latest meeting due later in the day. Markets are weighing the potential for further interest-rate cuts in 2026, particularly as inflation trends and economic momentum remain uneven.

Geopolitical risks also returned to the spotlight after uncertainty around the Ukraine peace process resurfaced. Tensions rose following Russia’s accusation — made without evidence — that Ukraine had struck President Vladimir Putin’s residence, a claim that threatens to complicate ongoing U.S.-brokered diplomatic efforts.