Published by Jessica Weisman-Pitts
Posted on October 28, 2024
3 min readLast updated: January 29, 2026
Add as preferred source on Google
By Ankika Biswas and Pranav Kashyap
(Reuters) -Europe’s main stock index closed higher on Monday as gains across most sectors outweighed the weakness in energy stocks on a slide in oil prices, with investors looking for crucial economic data and big-ticket U.S. tech earnings scheduled for later in the week.
The pan-European STOXX 600 finished 0.4% higher after logging its first weekly decline in three.
The energy sector dropped 1.3% to a near two-week low as oil prices slid after Iran downplayed Israel’s retaliatory strike over the weekend.
On the flip side, construction and materials and media led the charge among sectoral gainers.
Travel and leisure sector, which houses airline stocks such as Lufthansa and easyJet, also gained as lower oil prices translate to increased profit margins for airlines.
France’s CAC 40, which hit a one-week high, and Spain’s IBEX 35 index were the top gainers among regional bourses.
In the face of an improving inflation trend and economic concerns that prompted a European Central Bank interest-rate cut earlier this month, the bloc’s third-quarter GDP and October inflation data this week will be at the top of investors’ radar.
We are making major downward revisions to our ECB interest-rate forecast… the bank will implement back-to-back 50-bps cuts in December and January,” Capital Economics‘ Europe team noted.
The team highlighted their expectations of meagre economic growth at the start of the fourth quarter, concerns over a loosening labour market and slowing wage growth, and significant inflation risks over the next two years.
Other factors likely to set the tone for European and other global markets include earnings from a bunch of U.S. tech giants like Apple and Microsoft this week and the Nov. 5 U.S. Presidential elections.
While markets have started pricing in a second Donald Trump administration recently, Vice President Kamala Harris is leading Trump nationally by a marginal 46% to 43%, a recent Reuters/Ipsos poll showed.
On the earnings front, Philips slumped 17% after the Dutch medical devices maker lowered its annual sales outlook owing to degrading Chinese demand.
German speciality-chemicals-maker Wacker Chemie shed 3% after a third-quarter miss, while French auto-parts supplier OPMobility rose 5% after higher third-quarter revenue.
Galp shed 5% after the Portuguese energy firm gave a longer-than-expected drilling timeline for Namibia’s four-well Exploration & Appraisal programme.
Melrose Industries jumped 9.8% following the aerospace components supplier’s explainer for its Revenue & Risk Sharing Partnership portfolio.
Among others, Sonova climbed 7% after Reuters reported the Swiss hearing aid maker is resuming supplies to Costco.
(Reporting by Pranav Kashyap and Ankika Biswas in Bengaluru; Editing by Mrigank Dhaniwala and Tasim Zahid)
The STOXX 600 is a stock index that represents 600 of the largest companies across 17 European countries, providing a comprehensive view of the European equity market.
Corporate profits refer to the net income that corporations earn after all expenses, taxes, and costs have been deducted from total revenue.
Investment portfolios are collections of financial assets, such as stocks, bonds, and other securities, held by an individual or institution to achieve specific financial goals.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and derivatives, facilitating capital allocation.
Explore more articles in the Investing category
