After a couple of sharp setbacks in the previous week, the mood in European markets is likely to be quite cautious Monday morning.
Markets will be tracking quarterly earnings reports and economic data for direction. News on Brexit and U.S.-China trade talks are also likely to significantly impact price movements in the region.
U.S. stocks recovered some lost ground towards the end of the session on Friday and settled mixed.
Asian markets are exhibiting a mixed trend on Monday, with investors largely making cautious moves amid worries about global economic growth.
Responding to Jeremy Corbyn's letter that set out his demand for a Brexit deal, British Primer Minister Theresa May said she welcomed more talks with Labour on a Brexit agreement, especially on how alternate arrangements to the Irish backstop could work.
May wrote, "It is good to see that we agree that the UK should leave the European Union with a deal and that the urgent task at hand is to find a deal that honours our commitments to the people of Northern Ireland, can command support in Parliament and can be negotiated with the EU - not to seek an election or second referendum."
The next round of trade talks between the U.S. and China is scheduled to begin in Beijing later this week.
Last week, stocks tumbled in most of the markets across the globe on growth worries and amid doubts about China and the U.S. agreeing on a deal ahead of expiry of the 90-day truce.
Markets fell on Friday after a report from the Wall Street Journal said the two countries don't even have a draft accord that specifies where they agree and disagree. Reports that quoted U.S. President Donald Trump as saying that he will not meet with Chinese President Xi Jinping before a crucial March deadline, contributed as well to the setback last Friday.
The pan European Stoxx 600 index shed 0.52% on Friday. Among the major markets in Europe, Germany ended notably lower, with its benchmark DAX losing 1.05%. The U.K.'s FTSE 100 and France's CAC 40 ended lower by 0.32% and 0.48%, respectively. Switzerland's SMI declined 0.36%.
Switzerland's consumer price inflation data for January is due at 3:15 AM ET.
U.K.'s fourth quarter GDP data is due at 4:30 AM ET. Construction output numbers, industrial production data and trade balance are also due at 4:30 AM ET.
In news from France, a report on business sentiment from Bank of France is due for release during the day.