European Markets: Stoxx 600, FTSE, DAX, and CAC Forecast to Open Lower

European stock markets are anticipated to begin trading on Tuesday with a downward trend, reversing the gains observed earlier in the week, according to IG data.

The FTSE in the U.K. is projected to open 0.25% lower, while Germany's DAX is expected to fall by 0.63%. France's CAC 40 is predicted to decline by 0.37%, and Italy's FTSE MIB is forecasted to decrease by 0.33%.

This week is shaping up to be a busy one for European investors, with several central bank actions on the horizon. The European Central Bank (ECB) will hold its final policy meeting of the year on Thursday. While interest rates are expected to remain steady at 2%, ECB President Christine Lagarde has indicated a likely upward revision of growth forecasts for December. This follows September's increase in the annual GDP growth prediction to 1.2%.

In addition to the ECB, the Bank of England, Riksbank, and Norges Bank are also scheduled to make their final monetary policy decisions for 2025 this week. While the decision is expected to be a close call, the Bank of England is anticipated to implement a slight reduction in interest rates. Inflation figures for both the Eurozone and the U.K. are due to be released on Wednesday.

European leaders face a test this week as they address funding for Ukraine at a summit in Brussels on Thursday. Discussions will include the potential use of billions in frozen Russian assets to support a 210-billion-euro loan (equivalent to $246 billion) for Kyiv.

Overnight, Asia-Pacific markets experienced widespread declines, mirroring the downturn on Wall Street as investors continued to shift away from artificial intelligence stocks.

In the United States, stock futures traded near the flatline on Monday night as traders awaited the release of November's jobs report. Economists surveyed by Dow Jones estimate that nonfarm payrolls increased by 50,000, a significant decrease from the 119,000 jobs added in September. The unemployment rate is projected to be 4.5%, up from 4.4% in September. October's retail sales report is also scheduled for release.

*CNBC's Pia Singh contributed to this market report.*