European Markets Open Higher as Lufthansa Cuts 4,000 Jobs, Spain’s Inflation Rises
European stock markets started the week on a positive note on Monday, shrugging off worries about a possible U.S. government shutdown. The pan-European Stoxx 600 index edged up 0.3% by mid-morning trading in London, with most sectors moving into positive territory. Britain’s FTSE 100 gained 0.4%, while Germany’s DAX and France’s CAC 40 each posted modest rises of around 0.1%. Investors appeared cautiously optimistic as they awaited fresh economic data from the European Union and developments in Washington.
Airline giant Lufthansa was one of the day’s biggest corporate headlines. At its first capital markets day in six years, the German carrier projected annual free cash flow of more than €2.5 billion ($2.93 billion) and set earnings targets of 8% to 10% over the next two years. The company also announced plans to cut 4,000 jobs — largely administrative positions in Germany — by 2030. Lufthansa said the move is part of a broader strategy to digitize and automate its operations, alongside a €600 million ($704 million) investment in a new cargo hub at Frankfurt Airport.
Elsewhere in the corporate space, Danish biotech firm Genmab saw its shares slip 2.7% after revealing plans to acquire Utrecht-based cancer drug developer Merus in an $8 billion deal. Meanwhile, AstraZeneca gained 1.2% after confirming that it will list shares in New York while maintaining its London listing. These moves underscore how European companies are repositioning themselves in global markets amid growing competition and evolving investor expectations.
On the macroeconomic front, Spain reported an uptick in inflation, with consumer prices rising 3% in September from 2.7% in August. Analysts say the increase may put renewed pressure on the European Central Bank as it weighs its next steps on interest rates. The EU’s economic sentiment indicator, due later Monday, will also provide fresh insight into how households and businesses across the bloc are coping with higher borrowing costs.
Across the Atlantic, U.S. political developments remained on investors’ radar. President Donald Trump was expected to meet with Democratic and Republican lawmakers later Monday to try to avert a government shutdown. Back in the U.K., the Labour Party kicked off its annual conference in Liverpool, while Asian markets opened broadly higher, with Sony Financial Group soaring 36% after spinning off from parent company Sony Group. Together, these events paint a picture of a dynamic global market where corporate restructuring, political negotiations, and shifting economic indicators are driving investor sentiment.
source: cnbc