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European markets close slightly higher as fresh data shows rising recessionary risks

Karen Gilchrist

This is CNBC's live blog covering European markets.

LONDON — European markets closed slightly higher on Monday as investors digested the inconclusive results of Spain's election and looked ahead to a busy week of corporate earnings and central bank meetings.

The pan-European Stoxx 600 provisionally ended the session up by 0.1%, with the U.K.'s FTSE 100 and DAX slightly higher as France's CAC 40 dipped. Oil and gas stocks led sector gains, gaining 1.5%, while media stocks fell 0.7%.

European markets


Fresh data pointed to a slowdown in business activity in France, Germany and the U.K. in July,  adding to recessionary risks in Europe.

Spanish elections held Sunday left the country without a clear majority for either of the two main parties, opening the door to potentially prolonged coalition negotiations.

The European Central Bank meets on Thursday, when policymakers are expected to announce a 25 basis point rate hike and offer guidance for the final stages of their efforts to fight inflation.

Markets in Asia-Pacific were mixed Monday as investors digested key economic data from across the region. Japan's the Nikkei 225 gained 1.29% to start the week after new data showed business activity expanded for a seventh straight month. That comes as the Bank of Japan is set to meet on Thursday and Friday.

Stateside, U.S. stocks were higher as investors await a key policy meeting from the Federal Reserve Wednesday, as well as a week of corporate results, including from tech giants Meta, Microsoft and Alphabet.

Back in Europe, the U.K.'s Vodafone, Ireland's Ryanair, Switzerland's Julius Baer and Italy's Poste Italiane all reported earnings Monday.

European stocks close slightly higher

European stock markets closed marginally higher on Monday, with the Stoxx 600 index clocking a fifth consecutive positive session, up by 0.1%.

Oil and gas stocks were 1.5% higher, following a rise in oil prices and helping nudge the FTSE 100 index to a 0.2% gain.

However, media, tech and household goods stocks all fell by more than 0.7%.

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Stoxx 600 index.

— Jenni Reid

U.S. stocks open higher Monday

U.S. stocks opened higher to start the week Monday.

The Dow Jones Industrial Average gained 0.16%. The S&P 500 and Nasdaq Composite rose 0.29% and 0.38%, respectively.

— Sarah Min

UK economic activity slows in July, data shows

U.K. economic activity slowed sharply in July, new flash data showed Monday.

The flash U.K. PMI services output index fell to a six-month low of 51.3, according to new data released on Monday. Meanwhile, the manufacturing output index hit a seven-month low of 46.5.

— Karen Gilchrist

Euro zone bond yields fall after weak PMI data

Euro zone bond yields fell Monday on the back of disappointing flash PMI data out of France and Germany.

France's 10-year yield fell to 2.925%, and Germany's slipped to 2.375%.

— Karen Gilchrist

Flash PMI data shows euro zone contraction

Business activity contracted in the euro zone in July, flash estimates from purchasing managers survey showed Monday.

The HCOB Flash Eurozone Composite PMI Output Index, which gauges activity in the manufacturing and services sector, fell to an eight-month low of 48.9 in July, down from 49.9 in June.

French and German PMI data also came in weaker than expected, slipping to 46.6 and 54.1, respectively.

— Karen Gilchrist

Stocks on the move: Bavarian Nordic down 23%, Ocado up 10%

An Ocado truck.
Mike Kemp | In Pictures | Getty Images
An Ocado truck.
Mike Kemp | In Pictures | Getty Images

Danish biotech company Bavarian Nordic plunged to the bottom of the European Stoxx 600 in early deals, slumping 23.7%, after it said Saturday that it was ending its RSV vaccine program after poor trial results.

On the other end of the European benchmark, British online grocer Ocado jumped 10.7% after settling a three-year intellectual property dispute with Norwegian rival AutoStore.

Swiss bank Julius Baer was also up 5.8% and British telecom company Vodafone traded 3.9% higher after both companies reported strong earnings.

— Karen Gilchrist

European shares open lower

The pan-European Stoxx 600 opened 0.3% lower on Monday, with all major bourses and the majority of sectors trading in negative territory. Banking stocks led losses, dropping 0.8%, while telecom stocks were a rare outlier, adding 0.6%.

— Karen Gilchrist

Here are the opening calls in Europe

The U.K.'s FTSE 100 is seen opening 4 points higher at 7,661, the German DAX is seen 25 points lower at 16,153, and the CAC 40 is expected to open 6 points lower at 7,423.

— Karen Gilchrist

Japan's business activity expands for seventh straight month: au Jibun bank

Japan's business activity expanded for the seventh straight month, according to flash estimates by the au Jibun bank.

The country's composite purchasing managers index stood at 52.1 for July, unchanged from the month before.

Services PMI slipped slightly to 53.9 from 54 in June, while manufacturing activity stayed in contraction territory, with the PMI falling to 49.4 from 49.8.

— Lim Hui Jie

CNBC Pro: Bank of America says Europe's oil majors ‘are close to bottoming out' — and names its top pick ahead of earnings

Bank of America believes Europe's Big Oil stocks "are close to bottoming out," pointing to the start of the earnings season this week as an inflection point.

The Wall Street bank named its "Big Oil top pick" ahead earnings, and expect it to rise by 30% over the next 12 months.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: China's earnings season is just getting started. Here are some winners to watch

Some Chinese stock sectors are seeing fundamentals shift in their favor.

Profits are moving to industrials, consumer discretionary and staples — and away from materials and energy, according to HSBC.

Investors may also get some answers about macro policy in coming days with a gathering of Chinese leaders, called the Politburo, due by the end of the month.

CNBC Pro subscribers can read more here.

— Evelyn Cheng