European stock markets rose Monday, starting the new week on a positive note as investors awaited the release of key regional inflation data ahead of a policy-setting meeting of the European Central Bank.
At 03:05 ET (08:05 GMT), the DAX index in Germany gained 0.9%, the CAC 40 in France climbed 0.2% and the FTSE 100 in the UK rose 0.4%.
Eurozone inflation data due
The ECB meets on Thursday, and is widely expected to cut interest rates again, reducing its key rate by another 25 basis points to 2.50%, in order to stimulate an economy that has been stagnant for nearly two years.
Investors also expected the policymakers to signal more cuts ahead - markets are pricing in just under 90 bps of rate cuts by year-end - although there remains a degree of uncertainty of the size and timing of future reductions as the central bank has to juggle U.S. tariff risks, a potential Ukraine ceasefire and an expected surge in Europe-wide defence spending.
Inflation data, due later in today’s session, from the eurozone could provide more clues, essentially after data released at the end of last week showed price growth slowing in some of the bloc’s largest economies.
Trump tariffs in focus
Investors are also awaiting further details surrounding U.S. President Donald Trump’s plans for tariffs on his country’s major trading partners, including the European Union.
Trump has announced 10% additional tariffs on China and reaffirmed his tariff timings for 25% levies on Mexico and Canada.
However, on Sunday, U.S. Commerce Secretary Howard Lutnick said that Trump will determine the exact tariff levels on Tuesday, indicating there was some leeway for less aggressive levies.
Bunzl (OTC:BZLFY) gains on acquisition strategy
The defence sector is in the spotlight Monday, after European leaders agreed on Sunday to draw up a peace plan to present to Washington, including boosting defence spending and taking more of a lead in the defence of Ukraine.
Elsewhere, Bunzl (LON:BNZL) reported quarterly earnings earlier Monday, with the British distribution and outsourcing company reporting profit growth on the back of an aggressive acquisition strategy, as well as an increased dividend and an additional share buyback program.
Crude boosted by strong Chinese data
Oil prices edged higher Monday, helped by upbeat manufacturing data from China, the world’s biggest crude importer.
By 03:05 ET, the US crude futures (WTI) gained 0.2% to $69.91 a barrel, while the Brent contract rose 0.2% to $72.97 a barrel.
Data released over the weekend showed that Chinese manufacturing activity grew more than expected in February as local businesses still benefited from last year’s stimulus measures.
A private survey showed the same on Monday, with the Caixin manufacturing PMI hitting a 3-month high in February.
Additionally, doubts have emerged over whether the U.S. will be able to broker a peace deal between Russia and Ukraine, especially after the spat between Trump and Ukraine President Volodymyr Zelenskiy over the weekend, which resulted in Zelenskiy leaving without signing a planned mineral supply deal.
Zelenskiy received a show of support from European leaders on Sunday, especially with regards to defense supplies to Ukraine- suggesting that an end to the war may not be close.
