A look at the day ahead in European and global markets

By Rocky Swift, Chief Correspondent Japan Markets

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With much of Asia shut for Lunar New Year holidays, all eyes turned to the Middle East on hopes that talks between the U.S. and Iran will de-escalate geopolitical tensions.

 Oil prices were higher and gold fell after U.S. President Donald Trump said that he would be involved "indirectly" in talks over Tehran's nuclear program set for Tuesday in Geneva, adding he believed Tehran wanted to make a deal.

People walk past an anti-US billboard on a street in Tehran, Iran, February 5, 2026. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS/File Photo

Mainland Chinese, Hong Kong, Singapore, Taiwan and South Korea markets were closed, keeping activity subdued in financial markets following a break in the U.S. for Presidents' Day. 

With few catalysts on the day, traders looked ahead to other key data points this week, including Fed minutes on Wednesday and U.S. GDP figures on Friday.  

Britain, Canada and Japan are also due to publish inflation data this week. These price readings have become even more crucial for markets after the Reserve Bank of Australia earlier this month became the first major central bank, excluding Japan's special case, to raise rates after the post-COVID easing cycle.  

The RBA said on Tuesday it had concluded inflation would stay stubbornly high if it had not hiked interest rates.

In early European trades, the pan-region Euro Stoxx 50 futures were down 0.35% to 5,975, German DAX futures slid 0.39% to 24,774, and FTSE futures lost 0.18% to 10,422. U.S. stock futures, the S&P 500 e-minis , were down 0.46% at 6,819.

Graphics are produced by Reuters.