LONDON—European stock markets rose on Monday as traders looked forward to a U.S. Federal Reserve meeting, higher earnings and signs of closer U.S.-China relations.
pan-european Stocks 600 The stock ended Monday’s trading 0.2% higher.
british FTSE100 The index rose almost 0.1% during the day, while France’s CAC40 Like Germany, which rose more than 0.1%. dachshund Italy rose by nearly 0.3%. FTSE MIB Added 1%.
Local markets ended last week higher as investors reacted to the latest U.S. inflation numbers, the only federal data to be released as the government shutdown continues, and a flurry of corporate earnings reports.
Looking at individual stocks, Swiss pharmaceutical giants Novartis It fell almost 0.9% on Monday after the company announced the acquisition. avidity bioscience In a deal worth $12 billion.
Copenhagen listed bank Sidbank It was one of the top gainers, rising 5.5% after announcing plans to merge with Danish lender Arbeidernes Land Bank. Vetisk BankThe new organization, named AL Sydbank, became one of Denmark’s five largest banks.
barclays Meanwhile, Saudi Arabia announced it would soon approve a regional headquarters for a British financial institution in the country, rising 1.9% after the bank reportedly received a provisional license from the capital markets authority to conduct investment banking operations there.
meanwhile, HSBCThe company’s shares fell throughout the day after the bank said it would record a $1.1 billion provision in its third-quarter profit following a court ruling related to the 2009 Bernie Madoff investment fraud scandal. HSBC’s profits will be announced on Tuesday.
Porsche AG Shares rose nearly 1.3% after the company released its third-quarter earnings report late Friday, showing sales of 26.9 billion euros ($31.3 billion) in the first nine months of the year, down from 28.6 billion euros in the same period a year earlier.
Gulp Energia The Portuguese energy company rose 3.5% after its third-quarter earnings report showed adjusted net profit for the three-month period amounted to 407 million euros, beating analysts’ expectations of 321 million euros.
central banking, geopolitics, trade
Annual U.S. inflation hit a lower-than-expected 3% in September, triggering a rally in U.S. stocks on expectations that the Federal Reserve will cut interest rates at its meeting this week.
The market is currently pricing in a 96% chance of a 25 basis point rate cut this week, according to the CME FedWatch tool.
Geopolitics and trade are also at the forefront of investors’ concerns this week on hopes that the US and China can resolve their escalating trade dispute.
President Donald Trump and Chinese President Xi Jinping are scheduled to meet in South Korea on Thursday in a bid to ease trade tensions, a move that could bring greater transparency and reassurance to investors. As President Trump continues his tour of Asia, the two leaders will meet on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.
Global tech stocks rose on the news, with European industrial, technology and mining stocks benefiting from positive momentum surrounding the meeting and were the biggest gainers in morning trading, but that changed throughout the day.
The Stoxx Europe 600 Technology Index closed 1.1% higher, less than its previous gains, while the Stoxx 600 Industrial Products and Services Index rose almost 0.3%. The STOXX Europe 600 Basic Resources was higher in morning trading but fell just below the flatline by the closing bell.
CNBC will be participating in the Future Investment Initiative (FII) Forum in Riyadh this week, which will include 20 heads of state and more than 600 speakers.
Hundreds of bankers, consultants and technology executives are scheduled to travel to Saudi Arabia for the three-day event, including JPMorgan CEO Jamie Dimon, Goldman Sachs Group Inc.’s David Solomon, BlackRock Inc.’s Larry Fink and Brookfield’s Bruce Flatt.
—CNBC’s Liz Napolitano contributed to this market report.
