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Financial_markets Bearish

European Markets Dip Amid Fed Chair Powell Scrutiny and Global Uncertainty

Jan 12, 2026 08:06 UTC

European equities opened lower on Monday, with the STOXX 600 falling 0.7% as investors reacted to intensifying scrutiny of Federal Reserve Chair Jerome Powell and ongoing geopolitical tensions. Markets are pricing in heightened uncertainty ahead of key U.S. economic data releases.

  • STOXX 600 closed the pre-market session down 0.7%
  • Euronext 100 declined 0.9% in early trading
  • DAX posted a modest 0.6% drop despite positive earnings from Siemens Energy
  • Siemens Energy shares rose 3.2% following stronger-than-expected Q4 results
  • U.S. lawmakers have initiated a formal review process targeting Fed Chair Jerome Powell’s policy decisions
  • Markets are awaiting key U.S. inflation and employment data due later in the week

European stock indices began the week on a downturn, with the STOXX 600 losing 0.7% at the open, pressured by growing speculation surrounding the future of Federal Reserve Chair Jerome Powell. Investor focus intensified after multiple U.S. lawmakers called for a formal review of Powell’s leadership, citing concerns over inflation persistence and the pace of rate cuts. The Euronext 100 dropped 0.9%, while Germany's DAX slid 0.6% despite a strong earnings report from Siemens Energy, which rose 3.2% post-results.

The information presented is derived from publicly available market data and news reports, and does not reference specific third-party sources or proprietary data providers.