European stocks opened higher on Monday, with Spain's IBEX leading, while oil and bond yields eased. A US bond market closure and Wednesday's CPI report could keep the mood cautious.
European equities opened with gains on Monday: the Eurostoxx rose 0.5%, Germany's DAX 0.4%, France's CAC 40 0.4% and the UK's FTSE 0.5%. Spain's IBEX led at 1.2%, followed by Italy's FTSE MIB at 0.7%.
Banks and lower oil lift the STOXX 600
Reuters reported that the pan-European STOXX 600 gained 0.43% to 634.25 points by 0709 GMT, with banking stocks in front. The IBEX jumped 1.3%, the most among regional peers.
Oil prices slipped on expectations of more Russian supplies after US President Donald Trump said Ukraine and Russia had agreed to halt attacks on each other's energy facilities. Eurozone bond yields also eased, which helped sentiment for riskier assets.
Thin liquidity tempers the early advance
Even so, investinglive's analyst would not read too much into the early advance. The US bond market is closed for a holiday while Wall Street stays open, and thinner liquidity could exaggerate price movements. S&P 500 and Nasdaq futures were both up 0.2%.
Investors also look to earnings. LVMH reports after European markets close, and ASML and EQT are due later this week.
US CPI is the key risk event
The US CPI report on Wednesday is the key risk event to watch and could help determine whether Treasury yields have another leg higher. A hotter-than-expected print would make things dicey for stocks, especially if it reinforced expectations that the Fed may have to raise interest rates further.
Sources: investingLive, Investing.com (Reuters)
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