Investing.com – European stock markets rose on Monday as investors digested a slew of big corporate earnings ahead of key German inflation data.
At 03:15 ET (0715 GMT), German shares were trading 0.4% higher, France 0.3% higher and UK shares 0.4%.
European earnings season continues
European stock markets traded higher on Monday, with sentiment boosted by stronger-than-expected earnings from US tech titans Microsoft (NASDAQ:) and Alphabet (NASDAQ:), sparking a rally on Wall Street on Friday.
There’s even more US earnings to examine this week from the Magnificent Seven tech megacaps, including Amazon (NASDAQ:) on Tuesday and Apple (NASDAQ:) on Thursday.
The quarterly reporting season continues in Europe.
Vivendi (OTC:) shares fell 0.9% despite the French media group saying its first-quarter revenue rose significantly, helped by strong growth in its three core businesses: Canal+ Group, Lagardere and Havas.
The group added that a feasibility study is underway for the planned demerger into four separate businesses.
Philips (AS:) shares rose 1.7% after the Dutch medical device maker reported first-quarter results that were largely in line with expectations but also said it had reached a $1.1 billion U.S. agreement on its Respironics ventilators and fully supported its commitments. guide of the year.
BBVA (BME:) shares rose 1.4% after the Spanish lender’s first-quarter net profit beat profit forecasts thanks to rising lending revenue in Mexico and Spain, a trend expected to improve this year in its home country country.
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Deutsche Bank Shares (ETR:) fell 3.5% following news that a lengthy legal battle over the Postbank acquisition could cost Germany’s largest lender up to 1.3 billion euros ($1.39 billion).
German inflation data in focus
Economic news rose 3.3% year on year in April, a monthly gain of 0.7%.
This remains above the European Central Bank’s medium-term 2% inflation target, but more attention will be paid to German consumer price index data due later in the session given the importance of the German economy in the eurozone.
The Bank previously signaled it had cut its deposit rate in June, and while policymakers have made it clear there will likely be several cuts this year, they have not given a clear picture of exactly how many.
However, the June decline is likely to come months before the US Federal Reserve decides to ease its monetary policy, especially after Friday’s PCE price index data – the Fed’s preferred measure of inflation – turned out to be hotter. than expected in March.
The meeting will take place later this week and rates are expected to remain stable and potentially offer a hawkish outlook given the recent resilience of US inflation.
Oil falls ahead of peace talks between Israel and Hamas
Oil prices fell sharply on Monday as peace talks between Israel and Hamas eased concerns about wider conflict in the Middle East and the possibility of supply disruptions from the vital region.
By 3:15 a.m. ET, futures were trading 0.9% lower at $83.08 a barrel and the contract was down 0.9% at $87.38 a barrel.
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A Hamas delegation will visit Cairo on Monday for talks aimed at securing a ceasefire, a Hamas spokesman told Reuters on Sunday. The group is expected to respond to Israel’s latest proposal for a phased truce in the Gaza Strip, presented on Saturday.
It also fell 0.2% to $2,342.20 an ounce after trading 0.2% higher at 1.0715.