European shares gain as key data and US tech earnings loom
Corrects to "later this week" from "on Thursday" in paragraph 15
STOXX 600 up 0.4%
Philips tumbles on lowering full-year sales outlook
ECB'S Luis de Guindos due to speak later in the day
By Pranav Kashyap
Oct 28 (Reuters) -European shares started the week on a positive note, as investors prepared for a busy schedule of key economic data releases and earnings from major U.S. companies.
The pan-European STOXX 600 .STOXX was up 0.4% at 520.84 points, after its first weekly loss in three on Friday.
The energy sector .SXEP, which fell 2%, weighed on the benchmark. Oil prices tumbled 5% after Iran downplayed Israeli strikes. O/R
Meanwhile, the travel and leisure sector .SXTP, which includes airline stocks, was up 1%.
A large portion of airlines' costs are tied to fuel expenses and lower oil prices translate to increased profit margins for airlines.
Luxury stocks .STXLUXP also provided some support, gaining more than 1.3%.
Philips PHG.AS dropped 16.7% after the Dutch medical devices maker lowered its sales outlook for the year.
The healthcare sector .SXDP ticked 0.3% lower on the news.
European Central Bank Vice President Luis de Guindos' speech is due later in the day. Sweden's preliminary GDP figures and September retail sales are set to be released on Tuesday.
On Wednesday, the euro zone will reveal preliminary flash GDP, consumer confidence, and economic sentiment data, while Germany will release its consumer price figures, flash GDP, and employment data.
Spain's estimated GDP, Italy's preliminary GDP, and the British budget are also due on Wednesday.
CPI data for the euro zone, France, and Italy will be released on Thursday.
"The data out of the euro zone should be positive. The combination of unimpressive euro zone growth and quickening disinflationary pressures means there will more room for the ECB to dial up their easing cycle," said Elias Haddad, senior markets strategist at Brown Brothers Harriman.
Global market sentiment will be influenced by earnings from five members of the "Magnificent Seven" group of U.S. megacap companies.
Google parent Alphabet GOOGL.O, Microsoft MSFT.O, Meta META.O, Apple AAPL.O, and Amazon AMZN.O are all scheduled to report their quarterly results later this week.
The U.S. Presidential election, which is just a week away, is also keeping investors on their toes.
While markets have started pricing in a second Donald Trump administration in recent weeks, Vice President Kamala Harris is leading Trump nationally by a marginal 46% to 43%, a recent Reuters/Ipsos poll showed.
"There's a bit of a consolidation period.. easing policy is supportive, but you need a big catalyst. The U.S. election and the details of China's fiscal spending are on investors' radar right now," Haddad added.
Reporting by Pranav Kashyap in Bengaluru; Editing by Mrigank Dhaniwala
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
