Market Analysis

European Markets Start Higher, Fueled by Oil Sector Gains and Earnings

Amos Simanungkalit · 29 Jul 20243.9K Views

European shares started the week on a positive note, driven by strength in the global oil sector amid escalating concerns about the Middle East conflict and a series of strong earnings reports that boosted overall market sentiment.

The pan-European STOXX 600 index rose by 0.4% as of 0713 GMT on Monday, following slight gains from the previous week.

Oil and gas stocks led the gains, climbing 1.3%, as crude prices edged higher due to a rocket attack in the Israeli-occupied Golan Heights.

Among individual companies, Philips saw a notable increase of 8.6% after the Dutch medical devices firm reported quarterly results that exceeded expectations, supported by higher earnings and its restructuring efforts.

Shares of Germany’s Merck rose by 3.6% after the company upgraded its forecast, thanks to strong performance in its healthcare and electronics divisions.

On the downside, Heineken (AS) fell 6% after the Dutch brewer missed estimates for half-year operating profit growth, despite raising its full-year profit forecast.

Reckitt Benckiser (LON) dropped 9.2% following news that nearly 1,000 lawsuits have been filed against Abbott Laboratories (NYSE), with a recent jury verdict ordering Abbott to pay $495 million in damages. The lawsuit involved claims that Abbott's specialized formula for premature infants caused a dangerous bowel disease in an Illinois girl.