European shares rise on oil gains, strong earnings
European shares began the week with a modest rise buoyed by global oil price gains amid Middle East conflict and strong earnings reports.
The pan-European STOXX 600 index increased by 0.3 per cent as of 08:32 GMT on Monday, following marginal gains in the previous week.
Oil and gas stocks led the gain, climbing 1.4 per cent, as crude prices inched higher after a rocket strike in the Israeli-occupied Golan Heights heightened market concerns.
Investors are preparing for a busy week, with attention shifting to the US, where four major tech companies from the Magnificent 7 are set to report earnings, potentially influencing market sentiment.
Additionally, traders are anticipating the US Federal Reserve’s policy meeting on Wednesday, which could set the stage for a rate cut in September.
Among notable stock movements, Philips surged 10.3 per cent following a quarterly earnings beat, buoyed by higher earnings and successful restructuring efforts.
Germany’s Merck saw a 3.3 per cent rise after upgrading its forecast, driven by strong performance in its healthcare and electronics units.
Conversely, Reckitt Benckiser dropped 9 per cent due to ongoing US lawsuits, and Heineken lost 7 per cent after missing estimates for half-year profit growth despite raising its full-year profit outlook.
Attribution: Reuters