European stocks rise; investors buy the dip at start of new week

Investing.com - European stocks rose Monday, starting the new week on a positive note as investors continued to digest the Trump administration’s volatile trade negotiations and the global growth outlook. 

At 03:05 ET (07:05 GMT), the DAX index in Germany climbed 0.3%, the CAC 40 in France gained 0.5% and the FTSE 100 in the U.K. rose 0.2%. 

European indices closed sharply lower on Friday, with the pan-European Stoxx 600 seeing its worst session since April, after the White House hit countries around the world with a range of new tariff rates on Aug.1.

Investors buy the dip

However, investors have seemingly bought the dip Monday, especially after Friday’s weak nonfarm payrolls report increased hopes of a rate cut by the U.S. Federal Reserve next month.

Fed fund futures currently price in around 60 bps of interest rate cuts by December, considerably more than the 33 bps seen before Friday’s U.S. jobs report, while an easing in September is 83% priced in.

The economic data slate is largely empty in Europe Monday, while across the pond factory orders for June could provide more clues as to how corporate America is coping with the new tariffs regime.

U.S. President Donald Trump said on Sunday that he will announce the appointment of a new statistician in the coming days, after he fired the head of the Bureau of Labor Statistics, Erike McEntarfer, last week, accusing her of faking job numbers but providing no evidence of data tampering. 

Q2 corporate results 

The second-quarter earnings season is starting to ease, with a lack of major corporate results on Monday.

Still, PostNL (AS:PTNL) reported a €24 million quarterly loss after a government rejection of financial support forced a €40 million impairment on its mail business, casting doubt on the future of the Dutch mail, parcel and e-commerce company.

Senior (LON:SNR) reported a 32% year-over-year increase in pretax profit for the first half of fiscal 2025, supported by higher revenue and operating margins in both its Aerospace and Flexonics divisions.

UBS (SIX:UBSG) said it will pay $300 million to settle outstanding obligations related to the misselling of mortgage-linked investments by Credit Suisse in the United States.

Crude steady despite OPEC+ production hike

Oil prices steadied Monday, even after a group of top producers agreed to another large production hike in September, adding to global supply.

At 03:10 ET, Brent futures slipped 0.2% to $69.80 a barrel, and U.S. West Texas Intermediate crude futures rose 0.3% to $67.53 a barrel.

The Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September.

The move, in line with market expectations, marks a full and early reversal of OPEC+’s largest tranche of output cuts, amounting to about 2.5 million bpd, or about 2.4% of world demand.