European stocks started the new trading week on a positive note, with gains in the oil sector and upbeat earnings reports from companies like Philips boosting investor sentiment. The Stoxx 600 index was up 0.38% by mid-morning, with most sectors and major bourses across Europe trading in the green.
Philips shares jumped more than 10.5% in early deals after reporting better-than-expected second-quarter earnings, while Heineken shares fell 7%, despite first-half profit growth coming in weaker than expected.
Investors are also keeping a close eye on major central bank meetings this week, with the Federal Reserve and the Bank of England both set to announce policy decisions. Many economists expect the Bank of England to reduce interest rates for the first time since the pandemic on August 1, while traders are wagering that the US Federal Reserve will signal plans for a rate cut in September.
The slew of earnings releases continues this week, with Heineken, Philips, Pearson and Associated British Foods all reporting during the session. Other major tech companies like Microsoft and Apple are also set to release their quarterly results later in the week.
European inflation and growth data will be released on Tuesday, while Australia's CPI announcement is expected on Wednesday. The Bank of Japan policy decision is also scheduled for Wednesday, along with Meta Platforms earnings and the US Federal Reserve interest rate decision and news conference by Chair Jerome Powell.
Asia-Pacific markets climbed on Monday, with Japan's Nikkei 225 leading gains in the region. U.S. stock futures were also higher ahead of a continued slew of corporate earnings stateside.
Despite the positive sentiment, some investors remain cautious amid ongoing concerns over global economic growth and geopolitical tensions.
