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European equities opened the week on a positive note on Monday, as investors positioned for a busy stretch of quarterly earnings releases alongside a heavy slate of high-impact economic data from both Europe and the United States.
By 03:05 ET (08:05 GMT), Germany’s DAX was up 0.5%, France’s CAC 40 gained 0.1%, and the UK’s FTSE 100 rose 0.2%, reflecting cautious optimism across regional markets.
The pan-European Stoxx 600 index hovered near record highs after logging seven positive weeks out of the last eight, supported by a corporate earnings season that has so far been broadly well received.
Banking giants in focus as earnings season accelerates
The earnings calendar intensifies this week, led by major European lenders. UniCredit SpA kicked off the flow of results, reporting a record net profit of €10.6 billion for 2025, marking a 14% year-on-year increase. Italy’s second-largest bank also set ambitious medium-term goals, targeting €13 billion in net profit by 2028 and committing to €30 billion in shareholder distributions over the next three years.
UniCredit has been actively deploying its excess capital, spending billions of euros to become the largest shareholder in Germany’s Commerzbank and Greece’s Alpha Bank, while stopping short of pursuing full acquisitions.
Commerzbank AG is also due to report earnings this week, alongside UK banking heavyweights Barclays PLC and NatWest Group PLC, keeping the financial sector firmly in the spotlight.
Beyond banks, investors are awaiting results from several European blue chips, including Koninklijke Philips, AstraZeneca, TotalEnergies, Heineken, Mercedes-Benz Group, Siemens, and L’Oréal—offering a broad snapshot of corporate health across industries ranging from healthcare and energy to consumer goods and manufacturing.
Markets await critical U.S. economic signals
On the macroeconomic front, the week will also bring growth data from both the eurozone and the UK. However, the primary focus for global markets is expected to be a series of key U.S. economic releases, which were slightly delayed by the recent short-lived government shutdown.
The January nonfarm payrolls report and the consumer price index are due later in the week and are likely to shape expectations around the Federal Reserve’s policy trajectory. The data will be closely scrutinized following the nomination of Kevin Warsh as the next Fed chair, adding an extra layer of significance to incoming inflation and labor market signals.
Oil prices slide on easing Middle East tensions
In commodities, oil prices moved lower on Monday after the United States and Iran agreed to continue negotiations over Tehran’s nuclear program, easing concerns about potential supply disruptions in the Middle East.
Brent crude futures fell 0.9% to $67.46 per barrel, while U.S. West Texas Intermediate declined 0.9% to $62.98 per barrel. Both benchmarks had already dropped more than 2% last week, marking their first weekly decline in seven weeks.
The renewed diplomatic engagement followed indirect talks held in Oman on Friday, with both sides signaling a willingness to continue discussions. The developments reduced fears of a military escalation in the region—an outcome that could have threatened crude supplies from one of the world’s most strategically important oil-producing areas.
As the week unfolds, investors are set to juggle corporate earnings, macroeconomic data, and geopolitical developments, all of which are likely to drive volatility across European and global markets.
