European stocks surge ahead of PMI data; Philips rallies 4% after earnings

European stocks inched higher in morning trade Monday with investors focused on fresh economic data and corporate earnings.

The pan-European STOXX 600 was 0.44 percent higher as an important week for earnings begun in Europe.

Philips earnings beat

Philips released new numbers showing third-quarter sales of 5.9 billion euros and a 14 percent improvement in adjusted EBIDTA (earnings before interest, taxes, depreciation and amortization). The stock was trading 4 percent higher in early deals.

Meanwhile, easyJet shares were higher after UBS raised its outlook on the stock. The AT&T and Time Warner deal boosted European media shares with the likes of ITV in positive territory.

Royal Bank of Scotland was mildly lower after Investec cut its target price. Elsewhere, the basic resource sector was outperforming the broader market after Barclays raised its target prices for a number of stocks, including Rio Tinto and BHP Billiton.

Data in focus

The Bank of England will release its latest Asset Purchase Facility Quarterly Report on Monday. Media reports over the weekend said that small U.K.-based banks were preparing to leave the city before the end of the year, whereas international banks were planning its departure for the start of 2017.

Investors are also focused on flash manufacturing and services PMIs for the euro zone, due out at 9 a.m. London time.

Oil prices fell Monday after Iraqi officials said the country would not be part of any deal to cut OPEC production.

Source: CNBC