By Ankika Biswas and Pranav Kashyap
(Reuters) -Europe’s main stock index closed higher on Monday as gains in most sectors outweighed weakness in energy stocks due to a drop in oil prices, with investors looking for crucial economic data and major U.S. technology wins scheduled for later this week. .
The pan-European economy ended 0.4% higher after the first weekly decline in three weeks.
The energy sector fell 1.3% to its lowest in almost two weeks as oil prices fell after Iran downplayed Israel’s retaliatory strike over the weekend.
On the other hand, the construction sector, the materials sector and the media led the sector among the winners.
The travel and leisure sector, which includes airline stocks such as Lufthansa and easyJet (LON:), also gained ground as lower oil prices translate into higher profit margins for airlines.
40, which reached a one-week high, and Spain were the biggest gainers among regional stock markets.
In light of the improving inflation trend and economic concerns that prompted a rate cut by the European Central Bank earlier this month, third quarter GDP figures and October inflation figures will be top of investors’ radar this week.
“We are making major downward revisions to our ECB interest rate forecasts. The bank will make successive cuts of 50 basis points in December and January,” Capital Economics’ Europe team said.
The team highlighted their expectations of lackluster economic growth at the start of the fourth quarter, concerns about a loosening labor 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 number of US tech giants such as Apple (NASDAQ:) and Microsoft (NASDAQ:) this week and the November 5 US presidential election.
While markets have recently started pricing in a second Donald Trump administration, Vice President Kamala Harris leads Trump nationally by a marginal 46% to 43%, according to a recent Reuters/Ipsos poll.
On the earnings front, Philips fell 17% after the Dutch medical device maker lowered its annual sales outlook due to deteriorating Chinese demand.
German specialty chemicals maker Wacker Chemie lost 3% after a third-quarter bust, while French auto parts supplier OPMobility rose 5% after higher third-quarter sales.
Galp lost 5% after the Portuguese energy company gave up a longer-than-expected drilling timeline for the four-well Namibian Exploration & Appraisal program.
Melrose Industries rose 9.8% after the aerospace components supplier declared for its Revenue & Risk Sharing Partnership portfolio.
Sonova climbed 7% after Reuters reported that the Swiss hearing aid manufacturer is resuming deliveries to Costco (NASDAQ:).
