European Markets Open Higher as Auto Stocks Surge and Investors Await Key Central Bank Decisions

European markets opened the new trading month on a strong footing Monday, with auto stocks leading early gains as investors brace for a week packed with central bank meetings and corporate earnings.
The pan-European Stoxx 600 index climbed 0.3% in early trading, while Germany’s DAX and Italy’s FTSE MIB each gained around 0.7%. The U.K.’s FTSE 100 rose 0.2%, and France’s CAC 40 edged up 0.1%. The upbeat start reflects growing investor optimism despite uncertainty around interest rate decisions later this week.

Among the standout performers, carmakers fueled the early rally.
Renault jumped 3.4% after Chief Growth Officer Fabrice Cambolive revealed the company’s plans to forge more global manufacturing partnerships, following a recent collaboration with China’s Geely. Mercedes-Benz, Volkswagen, and Porsche also posted early gains of between 1.6% and 2.4%, signaling renewed confidence in Europe’s auto sector as demand stabilizes.

In corporate earnings, budget airline Ryanair kicked off the reporting week with solid results.
The Irish carrier announced after-tax profits of €1.72 billion for the second quarter and €2.54 billion for the first half of the year — a 42% year-on-year rise that met analysts’ expectations. Revenues climbed 13% to €9.82 billion, but shares dipped around 2% in early trading as investors weighed the company’s cautious outlook amid fluctuating fuel prices.

Energy giant BP also made headlines, advancing 1.5% after confirming the sale of U.S. onshore midstream assets to Sixth Street for $1.5 billion.
The move comes ahead of BP’s third-quarter earnings report due Tuesday, which will be closely watched by investors for signs of stability amid volatile oil prices. Other major earnings scheduled this week include Ferrari, Aramco, BMW, Vestas, Diageo, AstraZeneca, and Maersk.

Attention now turns to the region’s central banks, with the Riksbank set to announce its rate decision Wednesday, followed by the Bank of England on Thursday.
Economists remain divided on whether the U.K. central bank will hold or cut rates. Meanwhile, the Bundesbank will publish its financial stability report as markets also digest China’s latest manufacturing data, which showed a slowdown in activity. With sentiment cautiously optimistic, investors appear to be entering November ready for a busy week of economic signals and corporate updates.

source: cnbc