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European markets close mixed on earnings; oil prices soar

Key Points
  • Oil prices jumped after news that several Saudi ministers and princes were detained over the weekend as part of an anti-corruption investigation
  • Earnings season continues to shake up sentiment

European stocks posted minor gains by Monday's close, with investors taking note of the latest in earnings news, while eyeing the sharp rise in commodities.

The pan-European Stoxx 600 closed up 0.13 percent provisionally with sectors pointing in different directions by the close.

Bourses meanwhile finished mixed with the U.K.'s FTSE 100 eking out gains of 0.03 percent; while France's CAC 40 fell 0.19 percent and Germany's DAX dipped 0.07 percent.

European Markets: FTSE, GDAXI, FCHI, IBEX

Commodities tick higher, yet telecoms lose connection

Commodities outperformed most sectors on Monday, with oil and metal prices both posting sharp gains by Europe's close. Europe's top sector was basic resources, closing up 1.17 percent, as investors expect higher demand for nickel and copper. Goldman Sachs raised its forecast for nickel, according to Reuters. In stocks, London-listed miners Centamin, BHP Billiton and Anglo American all rose more than 1.5 percent.

Sticking with the area, both Brent and WTI crude were trading sharply higher by the close, up 2 percent or more. This followed news that several Saudi ministers and princes were detained over the weekend as part of an anti-corruption investigation. The oil and gas sector popped 0.73 percent. Spot silver and spot gold prices also rose in later trade.

Telecoms meanwhile were among the worst performing sectors Monday following news that Sprint and T-Mobile called off their merger after several months of talks. Deutsche Telekom, which owns T-Mobile, was down 2.6 percent as a result. Altice was the worst performing stock in the sector, yet pared losses to close down over 3 percent.

Earnings season rumbles on

Looking at individual stocks, earnings season continues to shake up sentiment, with a whole slew of corporates reporting this week.

Postnl was Europe's third best performer on the STOXX 600 after reporting higher third-quarter revenues when compared to the same period a year ago. Shares jumped almost 4.5 percent.

Sbm Offshore sank 13.8 percent after announcing a provision of $238 million to settle a U.S. probe related to "improper sales practice," Reuters reported.

Also near the bottom of the STOXX 600, Vopak dropped 6 percent after missing its third-quarter profit target and thus lowering its earnings forecast for 2017.

Elsewhere, Coloplast popped 5.4 percent. This comes after Kepler Cheuvreux raised its price target on the stock. Meanwhile, Societe Generale slipped 3.65 percent, as several brokers cut their price targets on the stock.

Looking at markets overseas, U.S. stocks posted slight gains around Europe's close, as investors digested the latest news surrounding Broadcom making an offer to buy Qualcomm.

Meanwhile, investors are keeping a close eye on the latest coming out of Asia, as U.S. President Donald Trump travels across the continent over this week and next.

On Monday, Trump said that the States stood by Japan, when it comes to dealing with North Korean "menace", Reuters reported, with the incumbent adding that both Japan and the U.S. should work together on improving trade ties.