European equity markets opened higher on Monday as investors assessed a heavy slate of corporate earnings and key economic data. Risk sentiment improved early in the session with major indices across the UK and mainland Europe recording gains. The broad advance reflected a combination of stronger than expected company results, positioning ahead of important macroeconomic releases and a generally supportive backdrop for equities.
In London, the principal UK index moved up as a number of large listed companies delivered quarterly earnings that beat expectations. These results helped underpin confidence in the resilience of corporate profits despite ongoing concerns about slower economic growth. Across continental Europe, major bourses in Germany and France also started the week on a positive footing. The gains in these markets were underpinned by a combination of firm corporate news and broader market momentum.
Currency markets added an extra dimension to the trading session. Sterling eased slightly against major currencies in early trading, reflecting a modest shift in global capital flows rather than a sudden change in the UK economic outlook.
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