European equities started the week on a cautious note Monday as investors looked to a fresh round of manufacturing PMIs for a read on the bloc’s industrial pulse. By 03:02 ET (08:02 GMT), Germany’s DAX edged up 0.1%, the U.K.’s FTSE 100 rose 0.2%, while France’s CAC 40 dipped 0.1%.

Early sentiment was clipped by softer-than-expected private survey data out of China, where manufacturing expanded but undershot forecasts—contrasting with last week’s contractionary official PMIs. The release reinforced a wait-and-see tone across Europe ahead of PMI updates for major economies and the euro area later in the session, followed by U.S. readings.

Monetary policy remains a steady backdrop. The European Central Bank left rates unchanged for a third meeting last week and reiterated that policy is in a “good place.” With the ECB’s final meeting of the year in December, consensus among economists has shifted toward an extended hold, potentially into 2026, barring a material deterioration in growth or inflation dynamics. Elsewhere in Europe, the Riksbank decides on rates Wednesday and the Bank of England follows on Thursday, giving markets additional policy color heading into year-end.

Despite recent global volatility, European equities outperformed U.S. peers in October, led by the U.K., France, and Spain, aided by resilient third-quarter earnings and renewed risk appetite. A broader cross-asset backdrop characterized by sporadic spikes in volatility—linked to U.S. credit concerns and U.S.–China trade frictions—proved transitory, with AI-related tailwinds and solid corporate delivery helping indices revisit highs.

Movers and corporate updates

• Ryanair reported a 42% rise in first-half profit, but flagged tougher year-over-year fare comps and geopolitical risks that could weigh in H2, tempering the otherwise robust headline.
• PostNL posted a wider Q3 operating loss as higher costs and declining mail volumes offset modest parcel growth, keeping pressure on margins despite a slight revenue increase.
• Heineken unveiled a 2030 roadmap targeting stronger sales and leaner operations, aiming for up to €500 million in annual savings through a tighter focus on 17 priority markets and a streamlined global brand portfolio.

What to watch

• Eurozone and country PMIs: breadth and depth of any stabilization in new orders and output, plus price-pressure signals relevant for ECB thinking.
• Central banks: guidance nuances from the Riksbank and BoE that could influence rate-path expectations and FX.
• Earnings cadence: a heavier slate later in the week that will test October’s resilience narrative.