European markets start new trading week in positive territory

European markets opened with muted gains on Monday as investors monitored renewed trade tensions between the U.S. and Canada and braced for a pivotal week of corporate earnings and Federal Reserve policy signals.

The pan-European Stoxx 600 index edged up 0.1%, with sectors mixed and major bourses showing little direction. The calm opening followed Canadian Prime Minister Mark Carney's weekend statement that Ottawa has "no intention" of pursuing a free trade deal with China, a move aimed at defusing U.S. President Donald Trump's threat of 100% tariffs on Canadian exports.

In corporate news, French food giant Danone fell 2.9% after a global recall of infant formula batches, while Ryanair rose slightly after raising its full-year fare growth forecast. Airbus declined nearly 1% as its CEO warned of an "unprecedented number of crises" in 2026.

Safe-haven gold continued its record run, with spot prices surging 2.3% to $5,096 amid ongoing geopolitical uncertainty.

The focus now shifts to a packed week stateside, where more than 90 S&P 500 companies—including Apple, Meta, and Microsoft—are set to report earnings. Additionally, the Federal Reserve will announce its first policy decision of the year on Wednesday, with investors seeking clues on the timing of future rate cuts.