Key European stock markets began the week on a positive note, buoyed by gains in the oil sector and investor optimism ahead of a packed corporate earnings calendar. However, early momentum faded by late morning as traders weighed mixed economic data and currency movements.
The region’s major benchmarks — the UK’s FTSE 100, Germany’s DAX, and France’s CAC 40 — all opened higher on Monday. By 11:00 CET, the DAX was leading gains with a 0.8% rise, the FTSE 100 added modestly, while the CAC 40 advanced 0.2% despite lingering budget uncertainties and weak manufacturing data showing continued contraction in October.
Oil and gold prices rose, while the euro slipped against the dollar amid renewed concerns over energy supplies and monetary tightening. Brent crude futures were trading at $64.76 a barrel, and U.S. West Texas Intermediate stood at $60.92. Gold edged up 0.3% to hover just above $4,000 per ounce.
Market sentiment was lifted by OPEC+’s weekend decision to pause production hikes in the first quarter of 2025, easing fears of a potential oil glut. The group will instead implement a modest output increase of 137,000 barrels per day in December, maintaining its earlier pace. Analysts said the decision helped stabilize prices and supported European energy stocks.
“The move by OPEC+ to hold off on further output hikes at the start of next year gave oil prices a lift and, in turn, boosted UK heavyweights BP and Shell,” said AJ Bell investment director Russ Mould.
Shares of BP and Shell were both slightly higher by midday in Europe, supported by stronger refining margins amid continued disruptions to Russian refined fuel exports caused by sanctions and attacks on infrastructure. BP also announced on Monday that it had agreed to sell its stakes in U.S. shale assets to investment firm Sixth Street.
Investors are also closely watching the latest batch of corporate earnings this week, with major companies including AstraZeneca, BMW, BP, and Commerzbank set to report.
Ryanair kicked off the week with stronger-than-expected results, posting a 42% year-on-year increase in first-half profit to €2.54 billion, driven by a 13% jump in fares and steady traffic growth. The airline’s shares climbed 2.9% in Dublin by midday. CEO Michael O’Leary renewed criticism of European countries with high aviation taxes, warning that Ryanair could shift capacity away from markets that introduce new levies.
In currency markets, the euro fell 0.2% against the dollar to $1.1517 by 11:00 CET. The Japanese yen weakened to ¥154.15 per dollar, while the British pound slipped to $1.3136.
U.S. futures were also trending higher, with gains between 0.1% and 0.5%, pointing to a cautiously optimistic start on Wall Street.
