European markets predicted to decline at the start of the year following a turbulent beginning.

European markets were expected to decline when trading starts on Friday, following a challenging beginning to 2025 for global stock markets.

The FTSE 100 in the U.K. was predicted to decline by approximately eight points to 8,243, while the DAX in Germany was expected to fall by five points to 19,988. The French CAC 40 was forecasted to lose 21 points, bringing it to 7,369. Lastly, Italy's stock market was predicted to drop around 107 points to 34,430.

The Stoxx 600 had finished higher in Europe on Thursday, following a turbulent start to the year.

Political instability in France, upcoming elections in Germany, and potential tariffs under U.S. President-elect Donald Trump were weighed by investors as they considered the impact on markets and the economy.

European investors will closely monitor inflation data from Turkey and Poland, as well as unemployment reports from Germany and Spain, and mortgage data from the U.K. on Friday.

On Thursday, U.S. futures remained relatively unchanged, mirroring the choppy start to 2025 for stocks stateside. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all finished the day lower. Notably, the Nasdaq Composite had its fifth consecutive session of decline, marking its longest losing streak since April.

Beijing's policy signals caused Chinese stocks to decline, while Hong Kong's Hang Seng index and South Korean markets rose.