European stocks concluded Monday on an upswing as investors monitored the ongoing geopolitical developments and anticipated forthcoming economic data to gauge the European Central Bank's interest rate direction.
The Eurozone is set to release preliminary flash GDP, consumer confidence, and economic sentiment figures on Wednesday.
In the UK, business confidence reached a four-month nadir in October, with firms treading carefully ahead of the anticipated budget presentation by the new Chancellor, Rachel Reeves, later this week, according to survey results published today. The Lloyds Business Barometer dipped three points to 44%, marking its lowest since June, based on responses from 1,200 companies between October 1-15.
Eurozone yields have risen, and the British pound has remained relatively stable as markets await both the UK Prime Minister Sir Keir Starmer’s government's first budget on Wednesday and the upcoming U.S. employment report, highly anticipated for Friday.
In the lead-up to the UK Budget, a survey highlighted that business confidence in the UK dipped to a four-month low in October.
Oil company stocks were under pressure as crude prices fell to a four-week low, spurred by diminishing concerns about a Middle Eastern conflict. Investors were relieved that Israeli strikes over the weekend did not impact the oil facilities of Iran, a key OPEC member.
The pan-European Stoxx 600 rose by 0.46%. The UK's FTSE 100 advanced 0.53%, Germany's DAX increased by 0.34%, France's CAC 40 improved by 0.89%, and Switzerland's SMI climbed 0.44%.
Elsewhere in Europe, markets in Austria, Belgium, Finland, Iceland, Ireland, Spain, Sweden, and Turkiye also saw gains, with Poland making slight progress.
Conversely, Denmark, Netherlands, Norway, Portugal, and Russia saw market downturns.
In the UK, Melrose Industries surged nearly 10%. Shares of EasyJet and Pearson increased by 2.8% and 2.69%, respectively. Halma, NatWest Group, Convatec Group, and Informa advanced between 2% and 2.75%.
Companies such as Diploma, Entain, Barratt Developments, Taylor Wimpey, Standard Chartered, Persimmon, Anglo American Plc, Smith & Nephew, ICG, Howden Joinery, WPP, Frasers Group, and IAG gained between 1.5% and 1.8%.
Lloyds Banking Group fell by 2.7%, while Whitbread, Endeavour Mining, BP, Shell, and BT Group declined between 1% and 1.7%.
In Germany, Fresenius rose by over 2%. HeidelbergCement, Puma, Munich RE, Deutsche Boerse, Bayer, Deutsche Bank, Deutsche Post, Hannover Rueck, E.On, Sartorius, Rheinmetall, and Allianz saw gains between 0.7% and 1.8%.
Porsche decreased by about 5.5%, Siemens Healthineers slipped 3.4%, and Adidas ended 1.6% lower.
In France, ArcelorMittal, Vinci, and Danone increased by 2.8% to 3.2%. Veolia rose nearly 2.5% after receiving a rating upgrade by RBC.
Kering, Publicis Groupe, Edenred, Bouygues, Air Liquide, Michelin, Saint Gobain, AXA, Accor, and Legrand gained between 1.3% and 2.4%.
Eurofins Scientific ended modestly higher after announcing a deal to acquire Synlab’s clinical diagnostics operations in Spain for an undisclosed sum.
TotalEnergies dipped notably, as Israel chose not to retaliate against Iran's missile strike by targeting its oil facilities, reducing supply concerns.
Philips shares plummeted nearly 17% after the Dutch medical devices company revised its annual sales outlook downward, citing diminishing demand in China from both consumers and hospitals.
