This week has been relatively quiet for financial markets, but there are signs of renewed momentum in Europe’s luxury goods sector which, after a period of sluggish performance, appears to be enjoying moderate revival.

This week, the spotlight was on Ukraine-Russia peace talks, as US and Russian officials met in Saudi Arabia. The US administration said it would hold direct talks with Russian President Vladimir Putin to end the war.

Speaking to European Union lawmakers on Monday, ECB President Christine Lagarde indicated that inflation in the Euro Area appears on track to reach its 2% target in the coming months.

Stocks slipped at the start of the week as investors reacted to Donald Trump’s tariffs.

On Monday, a groundbreaking development from a Chinese AI startup sent shockwaves through U.S. stock markets.

On Monday, US President Trump was re-elected and sworn into office. In his inaugural address, he emphasised priorities such as strengthening immigration and border security, expanding the United States’ presence in space, and introducing tariffs to protect American businesses.

UK headline inflation eased to 2.5% year-on-year in December, down from 2.6% in November. Core CPI, which excludes volatile components like food and fuel, also slowed, declining from 3.5% to 3.2%.

Market performance has been mixed so far this week, driven by a variety of factors impacting sentiment.

China’s retail sales data for November painted a mixed picture on Monday, with growth coming in below expectations at 3% compared to the same period a year ago.

In the UK, businesses scaled back their hiring plans last month, reflecting the cautious approach adopted by employers ahead of the Labour government’s autumn budget announcement.