City of London financial district at sunrise.
Alexander Spatari | Moments | Getty Images
LONDON — European stock markets moved into positive territory on Monday morning after a volatile few days as investors weighed concerns about bad loans on Wall Street.
pan-european Stocks 60 It was up about 0.8% as of 8:30 a.m. ET in London and closed 0.95% lower on Friday as concerns over the U.S. banking sector hurt European sentiment.
british FTSE Germany’s index rose 0.5% in early trading on Monday. dachshund France rose 1.1% CAC40 0.7% addition, Italy FTSE MIB was 1.4.3% higher.
kering Gucci owner opens his company’s beauty and fragrance business on Sunday loreal For 4 billion euros ($4.7 billion). The sale is aimed at reducing Kering’s debt, which stood at around 9.5 billion euros at the end of June, and comes ahead of L’Oréal’s results announcement on Tuesday, which will be announced the following day.
European defense stocks showed strong early moves. Lenk 7.3% increase, Hensoldt increased by 5.6%, line metal It rose 4.7% after US President Donald Trump held another tense meeting with Volodymyr Zelenskiy over the weekend over Ukrainian territory.
Meanwhile, European banks remained in positive territory, with the Stoxx Europe 600 Bank Index rising 1.6%. The biggest increase was in BPER Banca, which rose 4%. Sabadell Bank Added 4.4%.
“European banks are up 40% this year, so expectations are high in the market,” Christian Edelman, managing partner for Europe at Oliver Wyman, told CNBC’s “Europe Early Edition” on Monday.
Last week, U.S. financial giants Zions and Western Alliance disclosed problems related to non-performing loans, causing major stocks in several financial giants and regional banks to fall, but stocks rebounded on Friday.
“There’s really more credit anxiety in the U.S. around defaults, especially with the two banks that have reported so far,” Edelman said. “If you look at the European reports, and you said earlier that most of them will be after this week, the results have been pretty solid. There are no negative surprises for European banks so far.”
Other Swiss building materials companies holcim Shares rose 0.8% after the company, one of the world’s largest cement makers, agreed to buy Germany’s Zera, which makes wall systems, for 1.85 billion euros ($2.2 billion).
The Swedish engineering firm said Monday was a quiet day for earnings and data releases in Europe. sandvik The only major company scheduled to report its financial results.
Earnings will increase as the week progresses. SAP, barclays, heineken Among the companies reported on Wednesday was Svenska Handelsbanken. the next day Roche, unilever and Lloyds Banking Group We will report earnings.
US stock futures rose overnight as investors focused on a number of high-profile earnings reports and inflation data expected in the coming days.
Netflix, Coca-Cola, Tesla and Intel are all set to be released in the US this week, while the September consumer price index is also due to be released on Friday, which is expected to show that inflation remains high.
Traders will be paying particular attention to this report given the ongoing data blackout caused by the U.S. government shutdown.
Elsewhere, Asia-Pacific markets rose overnight as investors appreciated the latest growth data from China, which showed GDP rose 4.8% year-on-year in the July-September period. This was in line with analyst expectations compiled by Reuters.
—CNBC’s Pia Singh and Lee Ying Shan contributed to this market report.
