Global Market: European shares rise as easing oil prices lift sentiment; earnings in focus

European shares rose on Monday, supported by banking stocks as oil prices eased on hopes of an energy ceasefire between Russia and Ukraine, while investors awaited corporate earnings for fresh direction amid geopolitical uncertainty and elevated borrowing costs.

The pan-European STOXX 600 index gained 0.43% to 634.25 points by 0709 GMT. Spain's IBEX, which has a significant banking sector weighting, outperformed regional peers, climbing 1.3%.

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Oil prices declined on expectations of increased Russian supplies after US President Donald Trump said Ukraine and Russia had agreed to halt attacks on each other's energy facilities following a US-Russian diesel supply deal. The prospect of reduced energy supply disruptions helped improve investor sentiment, while easing euro zone bond yields provided further support to risk-sensitive assets.

Investors are now turning their attention to the corporate earnings season to assess the resilience of European companies amid geopolitical risks and higher borrowing costs. Results and management commentary are expected to provide fresh insights into business conditions, demand trends and the outlook for corporate profitability.

Luxury goods group LVMH is scheduled to report results after European markets close on Monday. Semiconductor equipment maker ASML and investment firm EQT are also due to announce their results later this week, with investors likely to scrutinise their outlooks for signs of strength or weakness across key sectors.

Among individual stocks, Nordex rose 2.5% after the onshore wind turbine manufacturer reported a 30% year-on-year increase in project order intake in the third quarter, highlighting stronger demand for its products.

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According to Reuters, investors are looking for earnings updates to help determine the next direction for European equities, as easing energy prices offer some relief but geopolitical uncertainty and financing costs continue to shape the market outlook.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)
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