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European markets close higher as travel stocks lead gains; U.S.-China talks in focus

Elliot Smith
Holly Ellyatt

This is CNBC's live blog covering European markets.

European markets on Monday made a positive start to the trading week, with investors looking ahead to high-stakes talks between the U.S. and China in the next few days.

European markets


The pan-European Stoxx 600 index closed up 0.7%, with almost all sectors and major bourses in positive territory. Travel and leisure stocks added 1.7% to lead gains, while media stocks dropped 0.2%.

Most Asia-Pacific markets reversed gains overnight to trade lower as investors considered economic data releases ahead of U.S. President Joe Biden and China's President Xi Jinping's first in-person meeting in about a year.

Global investors have also been digesting ratings agency Moody's Investors Service decision last Friday to downgrade its ratings outlook on the U.S. government to negative from stable, pointing to rising risks to the nation's fiscal strength. U.S. stocks were mixed Monday after the move.

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Biggest movers: BPER Banca up 6%, Siemens Energy up 5%

Shares of Italy's BPER Banca added more than 6% by mid-afternoon to lead the Stoxx 600.

Siemens Energy shares climbed more than 5% after German newspaper Handelsblatt reported Monday that the German government will provide 7.5 billion euros ($8 billion) in state guarantees to safeguard the company's order book.

- Elliot Smith

Stoxx 600 up 0.5% in afternoon trade

The pan-European Stoxx 600 index was up 0.5% by mid-afternoon, with travel and leisure stocks adding 1.4% to lead gains as almost all sectors and major bourses advanced. Financial services dropped 0.3%.

Siemens Energy up 4% on reports of German government guarantees

A trader walks next to Siemens Energy AG logos during Siemens Energy's initial public offering (IPO) at the Frankfurt Stock Exchange in Frankfurt, Germany, September 28, 2020.
Ralph Orlowski | Reuters

Siemens Energy shares climbed 4% on Monday after German newspaper Handelsblatt reported Monday that the German government will provide 7.5 billion euros in guarantees to safeguard the company's order book.

Problems with manufacturing faults at wind turbine subsidiary Siemens Gamesa led Siemens Energy to scrap its profit forecast earlier this year, and last month the company sought guarantees of up to 15 billion euros ($16 billion) from the German government.

Handelsblatt reported, citing sources, that the government will provide a 7.5 billion euro backstop while banks involved in discussions will bear 12 billion euros of guarantees.

- Elliot Smith

UK PM Sunak begins reshuffle with shock appointment of former leader David Cameron

Suella Braverman, UK home secretary, arriving at 10 Downing Street to attend a Cabinet meeting discussing the u-turn on the energy crisis, after Kwasi Kwarteng was sacked and replaced by Jeremy Hunt in London, United Kingdom on October 18, 2022.
Photo by Stuart Brock/Anadolu Agency via Getty Images

U.K. Prime Minister Rishi Sunak on Monday fired controversial Interior Minister Suella Braverman, as he begins a reshuffle of his top cabinet.

Sunak's office confirmed that Foreign Minister James Cleverley will replace Braverman. In a shock move, former Prime Minister David Cameron was announced as the new foreign minister.

Read the full story here.

Biggest movers: Phoenix Group up 8%, British Land up 5%

Shares of British insurer Phoenix Group jumped more than 8% in early trade after the company increased its full-year cash generation forecast after completing the merger of two of its brands.

British Land shares climbed more than 5% after projecting annual rental value growth will come in at the top end of its forecast range.

- Elliot Smith

A positive open in Europe

European markets opened in positive territory on Monday.

The pan-European Stoxx 600 index was up 0.5% in early trade, with travel and leisure stocks adding 1.4% to lead gains as most sectors advanced. Food and beverage stocks slid 0.3% lower.

CNBC Pro: The global EV market is set to hit a milestone in 2024. These battery stocks will stand out, HSBC says

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Its global penetration rate could hit the "important 20% threshold" next year — "heralding entry to the mass market" for the first time, it said.

"This has major implications for battery makers," the bank wrote in a Nov. 1 note.

It named buy-rated battery stocks.

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Now, as the Diwali festive season gets underway in the South Asian country, several sectors — and stocks — are expected to do well, according to Indian equity brokerage Kotak Securities.

"As the broader market valuations are rich, opportunities arising from [a] market correction can be used to add quality stocks (with attractive valuations) from a long-term investment perspective," analysts from the brokerage firm wrote in a recent note.

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European markets: Here are the opening calls

European markets are set to open in positive territory Wednesday, building on gains seen since the start of the week.

The U.K.'s FTSE 100 index is expected to open 40 points higher at 8,084, Germany's DAX up 60 points at 18,201, France's CAC 20 points higher at 8,130 and Italy's FTSE MIB up 206 points at 34,331, according to data from IG.

Earnings come from Orange, Air Liquide, Iberdrola, Roche and Heathrow. Data releases include Germany's Ifo Institute's survey on business conditions and expectations for April.

— Holly Ellyatt