Investing.com – European stock markets rose on Monday as investors digested a series of strong corporate earnings ahead of the release of key German inflation data.
At 3:15 a.m. ET (07:15 GMT), Germany was trading 0.4% higher, France was trading 0.3% higher and the U.K. was trading 0.4% higher.
European results season continues
European stock markets traded higher on Monday, with sentiment boosted by higher-than-expected profits from US tech titans Microsoft (NASDAQ:) and Alphabet (NASDAQ:), which sparked a rally on Wall Street on Friday .
There are more US earnings to look at this week from the “Magnificent Seven” tech mega-caps, with Amazon (NASDAQ:) due on Tuesday and Apple (NASDAQ:) on Thursday.
The quarterly results season also continues in Europe.
Vivendi (OTC:) shares fell 0.9% despite the French media group’s announcement of a sharp rise in first-quarter revenue, driven by strong growth in its three main businesses. Canal+, Lagardère and Havas.
The group added that a feasibility study for its proposed split into four distinct activities was underway.
Philips (AS:) stock rose 1.7% after the Dutch medical device maker reported first-quarter results largely in line with expectations, but also said it had reached a $1.1 billion settlement in the United States regarding its Respironics ventilators and supported its full-year orientation.
BBVA (BME:) stock rose 1.4% after the Spanish lender’s first-quarter net profit beat forecasts on higher loan income in Mexico and Spain, a trend expected to continue. improve this year in his country of origin.
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German Bank (ETR:) fell 3.5% after news that a protracted lawsuit stemming from the acquisition of Postbank could cost Germany’s largest lender up to 1.3 billion euros (1.39 billion dollars).
German inflation data in the spotlight
Economic news increased by 3.3% on an annual basis in April, a monthly increase of 0.7%
This remains above the European Central Bank’s medium-term inflation target of 2%, but more attention will be paid to German state CPI data due later in the session, given the importance of the German economy within the euro zone.
The European Union previously indicated it would cut its deposit rate in June, and while policymakers have made it clear there will likely be several cuts this year, they have been less clear on the exact number.
That said, a cut in June may still take several months before the US Federal Reserve decides to ease monetary policy, especially after Friday’s PCE Price Index data – the preferred inflation gauge of the Fed – turned out to be warmer than expected for March.
The meeting will convene later this week and is expected to keep rates steady and potentially offer a hawkish outlook, given recent stickiness in U.S. inflation.
Crude is ahead of Israel-Hamas peace talks
Oil prices fell sharply on Monday as peace talks between Israel and Hamas eased fears of a wider conflict in the Middle East, as well as the possibility of an interruption in supplies from the vital region .
As of 3:15 a.m. ET, futures were trading down 0.9% at $83.08 per barrel, while the contract was down 0.9% at $87.38 per barrel.
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A Hamas delegation will travel to Cairo on Monday for negotiations aimed at securing a ceasefire, a Hamas official told Reuters on Sunday, as the group is expected to respond to Israel’s latest proposal for a gradual truce in Gaza presented on Saturday .
Additionally, the price fell 0.2% to $2,342.20/ounce, while trading 0.2% higher at 1.0715.
