European markets started the week on a strong footing Monday, buoyed by sharp gains across Asia and ahead of a heavy schedule of corporate earnings.
By 07:10 GMT, Germany’s DAX was up 1%, France’s CAC 40 rose 0.5%, and the U.K.’s FTSE 100 climbed 0.4%. This followed a weak close on Friday, when worries surrounding the U.S. banking sector dragged European indices lower. A late rebound in U.S. regional banks helped ease those concerns going into the new week.
Nikkei Jumps on Political Developments
European sentiment was bolstered by a surge in Japanese stocks overnight. The Nikkei 225 soared more than 3% to surpass 49,000 points, hitting a record high after reports that Japan’s ruling Liberal Democratic Party secured enough parliamentary support to form a coalition government led by Sanae Takaichi.
Takaichi, widely seen as fiscally accommodative, is expected to support increased government spending and resist additional rate hikes from the Bank of Japan. Parliament is set to vote on her premiership on Tuesday, paving the way for Japan’s first female prime minister.
China’s Growth Slows but Beats Forecasts
In China, third-quarter GDP expanded by 4.8% year-on-year, slightly above market forecasts of 4.7% but slower than the 5.2% growth seen in the second quarter, according to official data released Monday. It marked the country’s slowest annual growth since Q3 2024, reflecting ongoing pressure from persistent disinflation and trade frictions with the U.S.
Meanwhile, in Europe, German producer prices slipped 0.1% in September, down 1.7% year-on-year, underscoring limited inflationary pressures in the eurozone’s largest economy.
Luxury Sector in Focus as Kering Sells Beauty Arm
The luxury sector is drawing attention after Kering (EU:KER) announced over the weekend that it would sell its beauty division to L’Oréal (EU:OR) for €4 billion. The deal reflects new CEO Luca de Meo’s strategy to reduce debt and refocus on the group’s fashion brands.
This week starts relatively quietly on the earnings front but will pick up pace in the coming days. L’Oréal reports Tuesday, while SAP (TG:SAP), Barclays (LSE:BARC) and Heineken (TG:HNK1) are scheduled for Wednesday. On Thursday, results from Kering, Roche (TG:RHO), Unilever (LSE:ULVR) and Lloyds Banking Group (LSE:LLOY) will be in focus.
In the U.S., major earnings this week include(NASDAQ:TSLA), Ford (NYSE:F), General Motors (NYSE:GM), Netflix (NASDAQ:NFLX), Procter & Gamble (NYSE:PG) and Coca-Cola (NYSE:KO), along with aerospace and defence giant RTX (NYSE:RTX) and tech stalwarts IBM (NYSE:IBM) and Intel (NASDAQ:INTC).
Oil Prices Slip as Supply Concerns Mount
Crude oil prices extended their decline Monday amid persistent concerns over weak demand and an expected supply surplus. Brent crude futures fell 0.8% to $60.83 a barrel, while U.S. West Texas Intermediate futures dropped 0.8% to $56.72.
Both benchmarks lost more than 2% last week, marking their third consecutive weekly decline, weighed down by the International Energy Agency’s warning of a looming supply glut in 2026.
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