European Stocks Rise on Earnings Growth Outlook
European stocks rose on Monday as traders weighed the outlook for earnings growth in the region. The Stoxx Europe 600 Index rose 0.3%, while the U.K.’s FTSE 100 Index gained 0.4%. Germany’s DAX Index advanced 0.5%, and France’s CAC 40 Index rose 0.4%.
Market Sentiment
Market sentiment was buoyed by the European Central Bank’s decision to keep its monetary policy unchanged. The ECB said it would continue to provide stimulus to the economy, and that it would continue to monitor the situation closely.
Earnings Growth Outlook
Traders were also focused on the outlook for earnings growth in the region. Analysts expect earnings to grow in the coming quarters, as the region’s economy recovers from the pandemic.
Sectors
The banking sector was the biggest gainer, with shares of Deutsche Bank AG and Commerzbank AG rising 1.3% and 1.2%, respectively. Shares of oil and gas companies also rose, with Royal Dutch Shell Plc and BP Plc gaining 0.9% and 0.7%, respectively.
Retailers
Retailers were among the biggest decliners, with shares of Carrefour SA and Tesco Plc falling 1.2% and 0.9%, respectively. Shares of luxury goods companies also fell, with LVMH Moet Hennessy Louis Vuitton SE and Kering SA dropping 0.7% and 0.6%, respectively.
Technology Stocks
Technology stocks were mixed, with shares of SAP SE and Nokia Oyj rising 0.7% and 0.6%, respectively. Shares of ASML Holding NV and Infineon Technologies AG fell 0.3% and 0.2%, respectively.
Currency Markets
In currency markets, the euro was little changed against the U.S. dollar, trading at 1.20. The British pound was also little changed, trading at 1.39.
Commodities
In commodities markets, Brent crude oil futures rose 0.3% to $67.60 a barrel. Gold futures rose 0.2% to $1,788.50 an ounce.
Outlook
Looking ahead, traders will be watching for further developments in the region’s economic recovery. They will also be keeping an eye on the earnings season, as companies report their results for the first quarter.