(fxcue news) - European stocks may open on a positive note Monday as investors bet on increased spending on infrastructure and defense in the region to beef up security and ensure that Ukraine will still be protected. With U.S. President overturning old certainties about the reliability of the U.S. as a security partner, EU nations are stepping up efforts to defend themselves in an increasingly multipolar world. Furthermore, the European Central Bank is expected to adopt a more flexible approach to interest rates, unlike the Fed which is cautious. U.S. stock futures traded lower amid lingering tariff-related uncertainties. In a Fox News interview that aired Sunday, President Trump declined to rule out a recession this year, saying "There is a period of transition" that will eventually pay off for the economy. However, Trump's commerce secretary, Howard Lutnick, was more definitive and said "absolutely not" when asked whether Americans should brace for a downturn. Elsewhere, in Canada, Mark Carney won the race to become the country's next prime minister. Asian stocks were mixed, with mainland Chinese and Hong Kong markets trading in the red, as China announced retaliatory tariffs on Canadian agricultural imports and data showed China's consumer price inflation fell 0.7 percent year-on-year in February, marking its first negative reading since January 2024. U.S. Treasury yields fell on growth concerns while both the yen and the Swiss franc gained on safe-haven demand. Gold was little changed above $2,900 per ounce, while oil fell to near the lowest since September on demand concerns and fears of oversupply in the market. The day's European economic calendar remains light, with German industrial production data likely to garner some attention. Across the Atlantic, reports on consumer and producer price inflation are likely to be in focus this week along with readings on consumer sentiment and inflation expectations. U.S. stocks closed higher on Friday but posted steep losses for the week on tariff-related concerns and fears the U.S. economy is heading toward a recession. The tech-heavy Nasdaq Composite climbed 0.7 percent, the S&P 500 gained 0.6 percent and the narrower Dow added half a percent after Fed Chair Jerome Powell said that the U.S. labor market remains solid, and inflation is headed toward the Fed's goal of 2 percent per year. Echoing concerns about President Trump's policies, Powell said the Fed is in no hurry to adjust rates and remains "focused on separating the signal from the noise." Meanwhile, data showed non-farm payroll employment climbed by 151,000 jobs in February after rising by a downwardly revised 125,000 jobs in January. The unemployment rate edged up to 4.1 percent. European stocks drifted lower on Friday amid much uncertainty over interest rates, U.S. tariffs and prospects for peace in Ukraine. The pan European STOXX 600 dropped half a percent. The German DAX lost 1.8 percent, France's CAC 40 shed 0.9 percent and the U.K.'s FTSE 100 finished marginally lower.