Market Analysis

Ahead of the release of important German inflation data, investors digested a plethora of noteworthy company profits, which led to a rise in European stock markets on Monday.

The in Germany increased by 0.4%, the in France by 0.3%, and the in the United Kingdom by 0.4% at 03:15 ET (07:15 GMT).

The European earnings season is still ongoing.

Stronger-than-expected earnings from American tech giants Microsoft (NASDAQ:) and Alphabet (NASDAQ:), which sparked a Wall Street surge on Friday, helped to bolster mood and drive higher European stock markets on Monday.

This week, there will be additional US results from the "Magnificent Seven" tech megacaps to examine. On Tuesday, Amazon (NASDAQ:) and on Thursday, Apple (NASDAQ:) will report.

In Europe, too, the quarterly results season is going strong.

Despite the French media group's announcement that its first-quarter revenue increased significantly due to robust growth at its three key companies, Canal+ Group, Lagardere, and Havas, Vivendi (OTC:) saw a 0.9% decline in its stock price.

The group also said that work was being done on a feasibility study for its proposed division into four distinct businesses.

The shares of Philips (AS:) increased 1.7% following the release of first-quarter results that were essentially in line with projections. The Dutch medical device manufacturer also confirmed that it had negotiated a $1.1 billion settlement in the United States concerning its Respironics ventilators and reaffirmed its full-year outlook.

The stock of Spanish lender BBVA (BME:) increased 1.4% as its first-quarter net profit exceeded profits estimates. The lender attributes this increase to a gain in loan income in both Mexico and Spain, a trend it anticipates improving in its home nation this year.

German inflation figures are highlighted

In economic news, April saw an increase of 0.7% month over month and 3.3% annual growth.

Given the significance of the German economy within the eurozone, more attention will be paid to the German state CPI statistics, which are expected later in the session, even if this is still over the 2% medium-term inflation objective set by the European Central Bank.

Policymakers have indicated that there will probably be numerous cuts this year, although they have not specified how many. The has already indicated that it will decrease its deposit rate in June.

Nevertheless, it is still likely to be several months before the US Federal Reserve decides to loosen monetary policy, particularly in light of the fact that the PCE price index data for March, the Fed's favored inflation indicator, came in hotter than anticipated on Friday.

Meeting later this week, it is anticipated to maintain stable rates and possibly provide a hawkish view given the recent volatility in U.S. inflation.

Crude surpasses Israel-Hamas peace negotiations.

Monday saw a dramatic decline in oil prices as hopes for a resolution between Israel and Hamas allayed fears of a larger Middle East conflict and the possibility of a disruption in supply from the crucial region.

The contract fell 0.9% to $87.38 a barrel by 03:15 ET, while the futures saw a 0.9% decrease in trading at $83.08 a barrel.

A Hamas spokesman told Reuters on Sunday that a delegation from Hamas will travel to Cairo on Monday to hold discussions aimed at achieving a ceasefire. The party is anticipated to provide a response to Israel's most recent request for a gradual truce in Gaza, which was presented on Saturday.

Moreover, decreased by 0.2% to $2,342.20/oz, although rising by 0.2% at 1.0715.

Paraphrasing text from "Investing" all rights reserved by the original author.