European markets open higher supported by anticipation of major banks’ results

European stocks opened higher on Monday as investors awaited the earnings reports of several major banks. Notably, shares of Portuguese company GALP surged to their highest level in 16 years following positive results from gas exploration in Namibia.

As of 0716 GMT, the European STOXX 600 index had risen by 0.5 percent, with gains driven by a 0.5 percent increase in bank shares.

This week, European bank earnings will be closely watched as investors seek clarity on whether higher interest rates continue to boost profits or if the year-long uptrend in stock prices is beginning to lose steam. Key players such as BNP Paribas, Deutsche Bank, Barclays, and Lloyds are set to announce their earnings later in the week.

Among the notable gainers, GALP Energia saw a remarkable 17 percent surge after announcing that the Mopan field off the coast of Namibia may contain at least ten billion barrels of oil.

Furthermore, shares of Alstom rose by 4.9 percent following the French train manufacturer’s agreement to sell its North American conventional railway signaling business unit to German railway systems manufacturer Knorr-Bremse for approximately 630 million euros ($671 million).