Europe closes on a mixed note amid latest earnings batch; Spain's IBEX jumps 2.44%

Key Points
  • The pan-European Stoxx 600 edged slightly higher by the close Monday
  • Sectors and major bourses pointed in opposite directions by the close
  • Spain's IBEX 35 rose sharply by the market finish, with many of the nation's banks closing sharply higher

European stocks finished relatively mixed Monday, as investors reacted to the latest corporate earnings, and continued to monitor the news coming out of Spain and the U.S.

The pan-European Stoxx 600 finished the day up 0.12 percent provisionally, while sectors were pointing in different directions by the close.

In bourses, the FTSE 100 fell 0.23 percent, while France's CAC ended roughly flat, down 0.01 percent. Germany's DAX however rose 0.09 percent by the close. In peripheral bourses, Spain's IBEX 35 rose 2.44 percent.

During Monday's session, euro zone stocks hovered close to their highest level in a decade, according to Reuters, as a healthy economy and well-received earnings reports appeared to offset lingering political uncertainty.

Earnings season in focus

Earnings season continues to shake up sentiment in markets on the first trading day of the week.

reported a 10 percent fall in third-quarter net profit on Monday, as lending income remained pressured by low interest rates. Spanish banks have had their latest results partially overshadowed in the wake of Catalonia's push for independence. Bankia's shares, however, rose over 2 percent in trade.

Sticking with the banking sector, HSBC fell 1.5 percent in trade, even though the European bank stated that pre-tax profit has soared 448 percent year-on-year in the three months ending September.

Elsewhere in earnings news, Glencore increased its full-year marketing guidance for earnings before interest and tax (EBIT) to between $2.6 billion and $2.8 billion. The miner cited the continuing recovery from the commodity crash that ended in 2016. Its shares posted modest gains by the close.

Outside of earnings season, U.K.-listed home builders such as Berkeley Group and Taylor Wimpey posted declines, after Barclays cut its rating on each stock. The bank also reduced its target price on Barratt Development, causing it to end in the red.

Only the president of Catalonia can confirm if elections will take place: Lawmaker

Apple pre-orders 'off the charts'

Technology stocks were supported by solid earnings from U.S. tech giants in the previous session. Ahead of its earnings report later in the trading week, said Friday that pre-orders for the 10th anniversary iPhone X were "off the charts." Semiconductor firms Dialog Semiconductors and AMS finished up over 4.5 percent each on Monday.

Around the European close, U.S. stocks traded lower as investors pored over the latest earnings news. Investors on Wall Street were paying close attention to the latest news coming out of the U.S. political sphere. On Monday, U.S. President Donald Trump's former campaign chairman Paul Manafort was indicted on charges related to "conspiracy against the United States."

Back in Europe, Spain moved to , shortly after Catalonia had declared independence from Spain. Madrid also dissolved the Catalan parliament and called for fresh regional elections.

Aside from Spain's IBEX 35 jumping sharply higher, several Spanish banks posted strong gains, with Banco de Sabadell, Caixabank, BBVA and Banco Santander all hitting the top of the European banks sector.

Oil prices fluctuated, with Brent crude and U.S. WTI edging slightly higher around the market close. The price moves come as sentiment was lifted on hopes of an extension to the current OPEC-led production cuts; however, rising exports from Iraq capped gains.

Energy outperformed other sectors however, rising 1.25 percent, with oil and gas stocks Tullow Oil and Saipem rising near to the top of European benchmarks.