European Shares Gain Amid Economic Reports and US Earnings
European shares rose as investors anticipated key economic data releases and earnings reports from major U.S. companies. The STOXX 600 increased after a previous weekly loss, while falling oil prices impacted the energy sector but benefited travel stocks. Upcoming economic indicators from the euro zone are expected to influence market sentiment.
European markets showed resilience at the start of the week, with shares rising as investors awaited a slew of crucial economic data releases and earnings reports from major U.S. companies.
The broader STOXX 600 index was up 0.4% to 520.84 points following a weekly loss last Friday. A significant tumble in oil prices by 5%, triggered by Iran's downplaying of Israeli strikes, kept the energy sector under pressure. Conversely, the travel and leisure industries, including airline stocks, gained 1% due to lower fuel costs, which improved profit margins.
Luxury stocks saw a boost of over 1.3%. However, shares of Philips fell sharply by 16.7% after the company downgraded its sales forecast. Upcoming data from the euro zone, including flash GDP, CPI figures, and economic sentiment indicators, are likely to play a pivotal role in shaping market outlook, as noted by Elias Haddad, senior markets strategist at Brown Brothers Harriman.
(With inputs from agencies.)