Europe midday: Stoxx flat as shutdown fears, German Ifo hit sentiment

26th Jan 2026 10:48

(Sharecast News) - European shares flatlined at midday as fears of another US government shutdown amid domestic turmoil over the weekend and a stagnant confidence survey in Germany dampened sentiment.

The pan-regional Stoxx 600 index was up 0.03% at 608 points by 1158 GMT. All other major bourses were higher, with Germany's DAX climbing 0.07% and the mining-heavy FTSE 100 rising 0.21% as the price of gold pushed beyond $5,100.

Gold futures were up 2.2% at $5,126.76 an ounce as investors continued to flock to safe haven assets. Silver prices, which recently breached $100 for the first time, were also higher, up nearly 6% at $106.61 an ounce.

In economic news, German business sentiment was unchanged in January, according to a survey released on Monday by the Ifo Institute.

The business climate index was steady versus December at 87.6. The current situation index nudged up to 85.7 in January from 85.6 the month before, while the expectations index dipped to 89.5 from 89.7.

"While today's economic calendar remains relatively light, the release of German Ifo business climate and US durable goods data provide two areas of note. For now, German sentiment appears to be stuck around historically low levels," said Scope Markets analyst Joshua Mahony.

"Once again, we see the German economy moving forward with little momentum, as businesses struggle against a backdrop of ever changing trade conditions that once again seemed to shift after the EU cancelled their agreement with the US in response to their overtures for Greenland."

"With VW CEO Oliver Blume stating that they will likely cancel their plans for an Audi factory in the US unless there is a reduction in auto tariffs, many businesses are struggling to know whether it is the right thing to invest or standstill in such an unpredictable environment."

Investors were once again keeping an eye on the US, where tensions were inflamed over the killing of an American citizen in Minnesota by immigration agents.

Several videos of the shooting contested Washington's claims that the dead man had drawn a handgun he was reportedly permitted to carry before killing him.

Senate Democrats have been urged to vote against funding the US Department of Homeland Security, which oversees the Immigration and Customs Enforcement agency and border patrol, during budget negotiations in the coming days, prompting fears of another Federal shutdown less than three months after the last one.

US relations with Canada were once again in focus as President Donald Trump threatened his northern neighbour with 100% tariffs if it struck a free trade deal with China.

Canadian Prime Minister Mark Carney on Sunday said he had no intention of doing so.

There was little corporate news to drive sentiment, but traders were looking ahead to the US Federal Reserve's first interest rate decision of the year on Wednesday. Policy makers are expected to stand pat, but their comments on the state of the economy will be scrutinised for any hints on possible cuts.

Fresnillo and Antofagasta both gained on the surging gold price.

Reporting by Frank Prenesti for Sharecast.com