European markets opened the week on a cautious note Monday, with traders awaiting fresh regional manufacturing data for insight into the sector’s health.
By 08:02 GMT, Germany’s DAX edged up 0.1%, the U.K.’s FTSE 100 rose 0.2%, while France’s CAC 40 slipped 0.1%.
Manufacturing Data in Focus
Market sentiment was slightly dented early Monday after private sector figures showed China’s manufacturing sector expanded at a slower pace than expected in October, reflecting cooling prices and a weaker economic outlook in the world’s second-largest economy.
Still, the reading pointed to modest growth in contrast with last week’s official government PMI, which indicated a contraction.
Investors now await similar purchasing managers’ index (PMI) data from major European economies — including Germany, France, and the eurozone as a whole — later in the session, followed by comparable reports from the United States.
The European Central Bank left interest rates unchanged last week for a third consecutive meeting, with policymakers saying policy was in a “good place.” The ECB’s next and final meeting of the year is set for December, and economists broadly expect the bank to keep rates steady well into 2026.
Sweden’s Riksbank will announce its rate decision on Wednesday, followed by the Bank of England on Thursday.
European Markets Outperformed in October
European equities outpaced U.S. markets last month, led by gains in the U.K., France, and Spain, according to Barclays in a note published Monday.
The bank said solid third-quarter earnings and renewed investor appetite lifted regional markets despite continued global uncertainty.
Globally, equities “continued to climb the wall of worries making new highs again in October,” Barclays noted, adding that concerns about “rising credit defaults in the U.S. and renewed U.S.-China trade spat pushed X-asset volatility higher,” though the effect was short-lived.
The rally, the bank said, was driven by “resilient Q3 earnings” and “AI tailwinds,” which “boosted them to the highs.”
Corporate Updates: Ryanair, PostNL, and Heineken
Earnings activity was relatively light on Monday, though several key reports are expected later this week.
Ryanair (NASDAQ:RYAAY) reported a 42% jump in first-half profit but cautioned that tougher year-over-year fare comparisons and geopolitical risks could weigh on results in the second half.
PostNL (EU:PNL) posted a wider operating loss for the third quarter as higher costs and falling mail volumes offset modest parcel growth, keeping pressure on margins despite a small increase in revenue.
Heineken (EU:HEIA) unveiled a new roadmap to 2030, pledging stronger sales and cost savings of up to €500 million annually by focusing on 17 key markets and a select group of global brands.
Oil Prices Climb as OPEC+ Pauses Output Increases
Crude prices advanced Monday after OPEC+ confirmed it will hold off on production hikes in the first quarter of next year, easing market fears of a potential supply glut.
Brent futures rose 0.7% to $65.20 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.7% to $61.41.
The oil producers’ alliance — which includes the Organization of the Petroleum Exporting Countries and its partners — agreed Sunday to raise output by 137,000 barrels per day in December, consistent with the pace set for October and November.
While the move was widely expected, the group also confirmed it will pause output increases through the first quarter of 2026, citing worries about a supply surplus and weaker demand during the typically slower winter months.
OPEC+ noted that January through March tends to be the weakest period for global oil consumption.
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