European stock markets displayed mixed performances on Monday as mounting tensions in the Middle East countered optimistic expectations of further interest rate cuts from the Federal Reserve this year.
Investors were also eagerly anticipating crucial U.S. tech earnings reports and pivotal central bank policy meetings in the United States, Japan, and the U.K. for guidance on market direction.
The pan-European STOXX 600 saw a slight increase of 0.2 percent, reaching 513.79, following a 0.8 percent climb on Friday.
Germany's DAX showed marginal gains, while the U.K.'s FTSE 100 advanced 0.9 percent. In contrast, France's CAC 40 experienced a dip of 0.4 percent.
Dutch medical devices maker Philips surged by 10.5 percent after reporting second-quarter results that outperformed analysts' expectations.
Heineken NV, however, dropped 7.5 percent after missing its half-year projections.
Oil and gas giant BP Plc gained over 2 percent in London, with Shell also climbing 1.6 percent, driven by concerns over a potential broader conflict in the Middle East.
The region faced a potential escalation in violence after Israeli authorities reported a rocket strike from Lebanon on a soccer field in the Israeli-controlled Golan Heights, resulting in the deaths of 12 children and teenagers, marking the deadliest attack on civilians since October 7.
Consumer goods company Reckitt Benckiser plummeted nearly 10 percent over worries of potential litigation following a U.S. jury’s verdict that attributed a serious bowel disease in a girl to Abbott Laboratories' infant formula.
GSK enjoyed a 1 percent rise after its RSV vaccine, Arexvy, received an EU recommendation for use in adults aged 50 to 59.
Stabilus shares soared by 4.6 percent in Paris after the motion control solutions provider reaffirmed its FY24 outlook, buoyed by a third-quarter profit increase to 24.3 million euros from 21.7 million euros the previous year.
China-linked stocks traded lower in anticipation of upcoming Chinese factory activity data. Hermes International fell over 3 percent, LVMH dropped 1.1 percent, and Kering decreased by 0.5 percent.
Merck rallied 3.3 percent as the German pharmaceuticals, lab gear, and specialty chemicals manufacturer raised its group forecast.
Conversely, conglomerate Thyssenkrupp fell 1.5 percent after revising its 2024 outlook downward.
