European markets are heading for a negative open Tuesday as central banks take center stage this week. The U.K.'s FTSE 100 index is expected to open 18 points lower at 8,240, Germany's DAX down 22 points at 20,291, France's CAC down 12 points at 7,342 and Italy's FTSE MIB down 129 points at 34,618, according to data from IG.

The bank has been lowering rates since June as inflation slowed, but other risks are growing, including the threat of higher tariffs promised by President-elect Donald J. Trump.

Central bankers across Europe have concluded that rates need to get much lower from current levels as growth concerns build. The European Central Bank is poised to take rates much lower in 2025. Sweden's Riksbank has slashed rates even more aggressively and will do so again this week. The Swiss have done similar.

France's central bank on Monday downgraded its 2025 growth forecast to 0.9% from 1.2%, citing "increased uncertainty" for the economic outlook both at home and abroad. The bank also reduced its forecast for 2026 by 0.2 percentage points to 1.3% – a figure it also expects for 2027.

The move by the ECB comes as inflation across the euro zone is nearly back at target and the economy is faltering

The European Central Bank has cut rates by a quarter percentage point amid signs of weakening growth and concern about the effects of political chaos in France and the possibility of new U.S. import tariffs after Donald Trump takes office as president.

The Bank of England is expected to maintain the UK’s base interest rate at 4.75 per cent when policymakers meet next week. Economists have previously hinted there could be signs of another cut on the horizon,