FX.co ★ European Stocks Inch Higher

European stocks mostly advanced on Monday, maintaining proximity to the record highs reached the previous week as markets braced for significant earnings announcements. The STOXX 50 index gained 0.3%, closing at 5,675, while the STOXX 600 edged slightly higher to finish at 572. Automotive stocks were strong in the Eurozone following China's announcement that it might grant exemptions for Nexperia chip exports, crucial for vehicle production. This news buoyed stocks such as Mercedes Benz, Volkswagen, BMW, and Stellantis, which rose between 0.9% and 2.3%. On the other hand, Rheinmetall saw a 4% increase in anticipation of its forthcoming earnings report. Conversely, Ferrari's stock dropped by over 2% ahead of its earnings announcement due to recent broker downgrades. Additionally, Campari shares declined by more than 3% after Italian tax authorities seized $1.5 billion in shares from its controlling company amid a suspected tax evasion investigation. Finally, BNP Paribas fell 1.6% as it plans to issue Additional Tier 1 capital for the first time since its unsuccessful attempt to acquire Banco Sabadell.