FX.co ★ Major European Markets Close On Firm Note

European stocks experienced an upward trend on Monday, driven by investor activity in response to earnings updates and corporate news. Anticipation surrounding the upcoming European Central Bank decision, with expectations of a 25 basis point rate cut later this week, further influenced market movements.

Investor sentiment faced a slight setback due to lower-than-anticipated growth in China's exports and imports for September, alongside a highly anticipated Chinese stimulus announcement over the weekend that failed to boost confidence.

The pan-European Stoxx 600 index increased by 0.53%. In the national markets, the UK's FTSE 100 rose by 0.47%, Germany's DAX climbed 0.69%, France's CAC 40 saw a 0.32% uplift, and Switzerland's SMI advanced by 0.86%. Other European markets including Belgium, Ireland, the Netherlands, Russia, Spain, and Sweden also posted gains. Markets in Austria, Finland, Greece, Iceland, Poland, Portugal, and Türkiye showed weakness, while Denmark and Norway remained stable.

Concerns over weak Chinese demand impacted shares of European luxury goods manufacturers. In the UK market, Vistry Group saw an increase of nearly 4.5%. Meanwhile, Bunzl, SSE, BAE Systems, and Severn Trent saw gains ranging from 2% to 2.5%, with United Utilities advancing by approximately 2%.

Corporate movements also highlighted Pershing Square Holdings, Sage Group, AstraZeneca, and others gaining between 1% and 1.6%. Mulberry Group's shares surged by over 20% following an updated takeover proposal from Frasers Group Plc.

Conversely, Entain's shares dropped 8% amid reports of a potential £3 billion tax impact on the gambling industry in the upcoming budget, with Flutter Entertainment shares also decreasing by about 6%. Croda International closed down by 2.3%, and Antofagasta, Frasers Group, Mondi, Barclays Group, and Fresnillo faced losses ranging from 1% to 2%.

In Germany, Rheinmetall rose by more than 2%, while Fresenius Medical Care, Infineon, Deutsche Telekom, and others recorded gains of 1% to 2%. However, Porsche declined by 1.7% and BASF closed about 1.5% lower, with Volkswagen, Bayer, and Vonovia also seeing moderate losses.

In the French market, companies such as Safran, Stellantis, Airbus Group, and Thales achieved growth between 1% and 2%. Sanofi ended the session nearly completely down, while Kering saw a 4% decline and LVMH closed down by 2.7%. Other notable losses included Edenred, Carrefour, and Teleperformance, each decreasing by 1% to 2%.