DAX, CAC, FTSE100, European Stocks Edge Higher as Earnings Drive Momentum and U.S. Rate Cut Hopes Grow

European markets kicked off the week with solid gains as investors weighed a series of corporate earnings results and looked ahead to potential monetary easing from the U.S. Federal Reserve.

Sentiment improved further after economic data showed a slight improvement in Eurozone business activity. The HCOB Eurozone Composite PMI, compiled by S&P Global, ticked up to 50.9 in July from 50.6 in June, though it remained just under the flash estimate of 51.0. Separately, Eurostat (EU:ETL) reported that producer prices in the bloc rose 0.8% month-over-month in June.

Major indices across the continent moved higher:

• Germany’s DAX climbed 0.8%
• France’s CAC 40 added 0.3%
• The UK’s FTSE 100 rose 0.4%

Key Stock Movers on Earnings:

• Gerresheimer (TG:GXI) rallied nearly 3% after revealing plans to carve out and eventually sell its underperforming molded glass business.
• Rational AG (TG:RAA) advanced 2.2% after affirming its annual growth forecast, backed by improved Q2 figures.
• Continental AG (TG:CON) slipped 1.3% as lower second-quarter sales disappointed investors.
• Hugo Boss (TG:BOSS) jumped 7% on stronger-than-expected quarterly operating profit.
• Infineon Technologies (TG:IFX) surged 4.7% after beating Q3 expectations and raising its operating margin forecast.
• Fresenius Medical Care (NYSE:FMS) dropped 3.4% after delivering weaker quarterly results.
• Aurubis AG (TG:NDA) rose 3.3% after exceeding profit forecasts for the first nine months of its fiscal year.
• Adecco Group (BIT:1ADEN) lost 2%, with Q2 revenue showing only moderate growth.
• Travis Perkins (LSE:TPK) climbed 6.5% on improved pre-tax profits for the first half of the year.
• Smith & Nephew (LSE:SN.) soared 15% after announcing a $500 million share buyback program, alongside a strong H1 earnings report.
• Domino’s Pizza Group (LSE:DOM) plunged 14% after cutting its full-year profit guidance.
• BP Plc (LSE:BP.) gained 2.2% following a return to profitability in the second quarter.
• Diageo (LSE:DGE) rose 6.5% despite a 30% drop in annual profit, suggesting investors looked past the earnings dip.
• Fresnillo (LSE:FRES) popped 7.6% as the miner posted a fourfold surge in first-half net income.

With more earnings on the way and speculation building over potential rate cuts in the U.S., European markets appear poised to maintain their upward trajectory — at least in the short term.

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