European markets started the week slightly firmer on Monday, buoyed by a generally constructive earnings season, though trading volumes were muted due to holidays in both Asia and the United States.
At around 08:02 GMT, Germany’s DAX advanced 0.4%, France’s CAC 40 added 0.2%, and the U.K.’s FTSE 100 rose 0.2%.
Earnings momentum supports markets
Activity was subdued, with much of Asia closed for Lunar New Year celebrations and U.S. markets shut for George Washington’s birthday. Even so, investor sentiment across Europe remained broadly upbeat as corporate earnings continue to exceed expectations against a gradually stabilising economic backdrop.
According to LSEG data, companies accounting for 57% of Europe’s total market capitalisation have reported results so far. Fourth-quarter earnings growth is averaging 3.9%, outperforming earlier forecasts that had pointed to a 1.1% contraction. Around 60% of companies have surpassed analyst estimates, compared with a typical beat rate of 54%.
While Monday’s earnings calendar is relatively light, attention this week will turn to Europe’s major mining groups — Rio Tinto (LSE:RIO), Glencore (LSE:GLEN), Anglo American plc (LSE:AAL) and Antofagasta plc (LSE:ANTO) — as they release results amid elevated metals prices.
Automaker Volkswagen AG (TG:VOW3) is also likely to draw scrutiny after Manager Magazin reported that the group plans to reduce costs by 20% across its brands by the end of 2028.
Across the Atlantic, the earnings spotlight will fall on Walmart Inc. (NASDAQ:WMT), which is set to publish quarterly results on Thursday. Investors will be watching closely for signals on U.S. consumer demand.
Economic data in focus
On the macro front, Eurozone industrial production figures for December are due later Monday, with economists expecting a 1.5% month-on-month decline.
In the U.K., asking prices for newly listed homes were broadly flat in February, dipping by just £12 to an average of £368,019 after a 2.8% rise in January, according to property portal Rightmove.
Earlier in Asia, Japan’s latest GDP reading disappointed. The economy expanded at an annualised pace of just 0.2% in the fourth quarter, well below expectations of 1.6%. The data showed only a modest recovery following a sharp contraction in the third quarter, potentially strengthening the case for further fiscal support under Prime Minister Sanae Takaichi.
Oil steady ahead of U.S.–Iran talks
Crude prices were little changed in quiet holiday trade, as markets awaited further diplomatic engagement between Washington and Tehran.
Brent crude futures slipped 0.1% to $67.66 per barrel, while U.S. West Texas Intermediate futures edged down 0.1% to $62.68 per barrel.
Both benchmarks had declined between 0.5% and 1% last week after U.S. President Donald Trump suggested that a potential agreement with Iran could be reached within a month, weighing on prices.
A second round of U.S.–Iran discussions is scheduled for Tuesday in Geneva, following renewed talks earlier this month aimed at resolving long-standing tensions over Iran’s nuclear programme.
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