LONDON — European stocks were higher on Monday ahead of a busy earnings week.
The pan-European Stoxx 600 index was preliminarily 0.24% higher at the closing bell in London, with major bourses in the green but sectors mixed.
The week sees earnings season get underway. Investors will be keeping an eye on ASML, Volvo, LVMH and Deutsche Bank, among others, filing their latest figures.
Geopolitics could also continue to determine market sentiment this week as tensions between the U.S. and Canada resurface.
Canadian Prime Minister Mark Carney said on Sunday that his country has no intention of pursuing a free trade agreement with China, after U.S. President Donald Trump threatened to impose 100% tariffs on Ottawa if it signed a trade deal with China.
“Canada respects our engagements, our commitments. We have commitments under CUSMA (Canada-United States-Mexico Agreement) not to pursue free trade agreements with non-market economies without prior notification. We have no intention of doing that with China or with other non-market economies,” Carney said.
In equity markets, Danone shares lost 2.13% in Monday trade after the French multinational food producer was forced to recall batches of its infant formula globally after traces of a toxin were recovered.
Meanwhile, Ireland-listed shares of Ryanair traded almost 2.23% lower on Monday, paring some earlier losses. The low-budget airline lifted its full-year fare growth forecast to more than 7%, above its 1-2 points target, as revenues climbed 9%.
Airbus, meanwhile, was down 2.03% as the planemaker navigates growing geopolitical challenges. In a note seen by Reuters, CEO Guillaume Fauray said 2026 has been marked by an “unprecedented number of crises.” The pan-European aerospace group will report earnings next month.
Elsewhere, gold prices hit new all-time highs, with spot prices advancing 2.23% to $5,090 on Monday, while U.S. gold futures were last seen up 1.7% at $5,071.29.
Asia-Pacific markets traded mixed Monday as investors assessed the situation, while U.S. stocks rose as traders braced for a big week of key earnings reports and a U.S. monetary policy meeting.
More than 90 S&P 500 companies are set to post quarterly reports this week, including Apple, Meta Platforms, and Microsoft. So far, the earnings season has been strong, with 76% of the companies that have reported beating expectations, per FactSet.
Traders this week will also turn their attention to the Federal Reserve. The central bank is set to announce its first policy decision of the year on Wednesday.
While the Fed is widely expected to keep its overnight rate unchanged, Wall Street will look for clues on when Fed officials will cut rates.
— CNBC’s Fred Imbert and David Martin contributed to this market report.