European markets set to open flat to higher as 2025 draws to a close

European stocks are expected to open in broadly flat territory on Tuesday as markets continue to struggle for direction in a holiday-shortened trading week.

The U.K.'s FTSE is seen opening 0.1% higher, France's CAC 40 unchanged, Germany's DAX just a touch lower, and Italy's FTSE MIB 0.12% higher, according to data from IG.

Regional bourses closed mixed on Monday, with defense stocks struggling as talks continue to agree on a framework peace agreement to end the war in Ukraine.

Asia-Pacific markets mostly fell overnight after the tech sell-off on Wall Street continued on Monday amid AI bubble fears.

Nvidia shares dropped more than 1% Monday stateside, giving back some of its more than 5% gain in last week's trading session. Palantir Technologies and Meta Platforms also suffered losses, as did Oracle.

U.S. Stock futures were relatively unchanged overnight.

There are no major earnings or data releases in Europe on Tuesday.