European equities moved modestly higher on Monday, helped by a broadly supportive earnings season, though trading volumes were thin due to holidays in both Asia and the United States.
At 03:02 ET (08:02 GMT), Germany’s DAX advanced 0.4%, France’s CAC 40 added 0.2%, and the UK’s FTSE 100 gained 0.2%.
Earnings season supports sentiment
The week began quietly, with much of Asia observing the Lunar New Year holiday and U.S. markets closed for George Washington’s birthday. Still, investor mood in Europe remained constructive, as corporate results have generally exceeded expectations amid signs of a gradual economic recovery.
According to LSEG data, companies accounting for 57% of Europe’s total market capitalization have reported fourth-quarter results so far, delivering average earnings growth of 3.9%—well above earlier projections for a 1.1% contraction. Around 60% of firms have beaten analyst estimates, compared with a typical quarterly average of 54%.
While Monday’s earnings calendar is light, attention this week will center on Europe’s four largest mining groups—Rio Tinto, Glencore, Anglo American, and Antofagasta—as metals prices hover near recent highs.
Meanwhile, Volkswagen is in focus after Manager Magazin reported that the carmaker plans to reduce costs by 20% across all brands by the end of 2028.
In the U.S., the key earnings event will be results from Walmart on Thursday, with the retail heavyweight’s report expected to provide fresh insight into consumer spending trends.
Economic data and oil markets
On the macro front, Eurozone industrial production data for December is due later Monday and is forecast to show a 1.5% monthly decline.
In the UK, property website Rightmove reported that average asking prices for newly listed homes dipped by just £12 in February to £368,019, following a sharp 2.8% rise in January.
Earlier in Asia, Japan’s fourth-quarter GDP rose just 0.2% on an annualized basis, significantly below the 1.6% forecast, reinforcing the case for stronger fiscal support under Prime Minister Sanae Takaichi.
Oil prices were broadly steady in holiday-thinned trading. Brent Crude futures edged down 0.1% to $67.66 per barrel, while West Texas Intermediate slipped 0.1% to $62.68. Both benchmarks had already fallen between 0.5% and 1% last week after comments from U.S. President Donald Trump suggesting a potential deal with Tehran.
The U.S. and Iran are scheduled to hold a second round of talks in Geneva on Tuesday as they continue efforts to address longstanding tensions over Tehran’s nuclear program.
Sources: Peter Nurse
THE ETERNAL SOVEREIGN 
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