European stocks inch higher; FTSE climbs as sterling drops

European stock markets traded mostly higher early Monday as investors focused on earnings, while keeping an eye on tax reform plans in the U.S. and political woes in the U.K.

The FTSE 100 was the standout gainer, rose 0.4 percent in early deals. The index was helped by a sharp drop in sterling over the weekend which boosts the profits of large U.K.-based multinational firms that collect revenues in U.S. dollars. Sterling fell on growing concerns over the future of Theresa May as prime minister.

In individual stocks news, Aggreko shares rose 3.6 percent after the company appointed a new chief financial officer and received a rating upgrade from Jefferies.

Taylor Wimpey shares climbed 0.4 percent on a trading update where it said it was on track for further growth. Meanwhile, Sonova shares sank 8.5 percent in early deals as the Swiss hearing aid maker reported first-half results that missed analyst expectations.

Elsewhere on Monday, markets in Asia finished under pressure as investors questioned the chances of U.S. Republicans achieving a tax reform deal quickly. This sentiment is set to transpose to Europe.

In Germany, Chancellor Angela Merkel urged party leaders to reach a compromise for a new coalition government. In terms of data, there will be a new OPEC monthly report.

Source: CNBC