European stocks are expected to have positive momentum next week as large-cap companies continue to perform on the back of strong global revenue streams.
"European equity markets...feature world-class operators that are able to generate income from global revenue sources," Stephen Pope, Head of Equity Research at Cantor Fitzgerald Europe told CNBC.com.
"Good growth is keeping the mining and steel companies in a powerful position," Pope added.
On the political front, French President Nicolas Sarkozy will be feeling the pressure at the Economic and Financial Affairs Council meeting on Monday and Tuesday. The Portuguese Prime Minister Jose Socrates kicked off his term at the helm of the European Union with a stern warning to Sarkozy over his intention to delay France's budget.
Meanwhile, shares of Barclays and Royal Bank of Scotland could be in for some volatile trading. A final ruling from the Dutch Supreme Court on whether ABN Amro can sell its U.S. unit LaSalle to Bank of America is due to be announced on Friday.
The strength of Europe's employment will be in focus on Tuesday as investors react to the release of Monster.com's employment index.
Earnings begin to pick up again next week with French supermarket operator Carrefour, Dutch investment house Laurus, British retailer Marks & Spencer and Swedish auto-maker Saab all reporting earnings.
On Wednesday, Aviva CEO Richard Harvey swaps the challenges of the board room for an entirely different set of problems as he and his wife plan to spend a year in Africa working for the aid charity Concern Universal. Harvey is replaced by Andrew Moss, currently group finance director of Aviva, the following day.
And the U.K. confectionery giant Cadbury will receive its sentence Friday after pleading guilty to three offenses related to the health and safety of its chocolate bars.