Investing.com – European stocks traded slightly higher on Monday as investors digested a strong reading of factory orders in Germany and a survey showing concern about the impact of Brexit on company earnings, while kicking off the busiest week yet of the fourth quarter earnings season.
Nearing midday in Europe, the benchmark Euro Stoxx 50 inched up 0.05%, France’s CAC 40 gained 0.32%, and Germany’s DAX 30 edged forward 0.05%.
German factory orders boosted sentiment on Monday with a 5.2% surge in December that was its best reading since July 2014 and smashed estimates for a rise of just 0.5%.
Meanwhile, the euro zone retail purchasing managers’ index (PMI) remained roughly unchanged January, but the reading of 50.1 signaled a broad stagnation of sales.
Investor confidence in the region registered a slight setback in February though the outlook for the current situation hit its highest level since May 2011, according to the Sentix report.
Later in the session, European Central Bank (ECB) president Mario Draghi will speak before the European Committee on Economic and Monetary Affairs.
Separately, an Ipsos Mori survey of British companies showed that 58% think the Brexit, as the decision for the U.K. to leave the European Union is known, has already had a negative impact on their business, though most were confident they could survive the change.
Precisely on that note, Ryanair Holdings (IR:RYA) was down 1.7% as it reported an 8% drop in profits and warned that the Brexit would be a concern for airlines with exposure to the pound.
On the positive side, shares of Randgold Resources (LON:RRS) jumped nearly 4% after the mining company reporting a 76% increase in profit.
Electrolux (ST:ELUXb) slumped 2% after the Swedish home appliance manufacturer announced that it would pick up American smart kitchen appliance firm Anova for $115 million.
Among banks, shares in Barclays (LON:BARC) were up more than 1% as the British bank said it had created a new standalone unit to support its retail and investment banking businesses once they are formally separated.
Italian lender UniCredit (MI:CRDI) fell more than 3% as it launched its €13 billion ($13.96 billion) capital increase.
Meanwhile, oil prices ticked higher on Monday on concern that new U.S. sanctions on Iran could extend to crude supplies, but data showing that drilling activity in the states increased again, marking its 13th rise in 14 weeks.
Energy stocks were trading mixed, as French oil and gas major Total SA (PA:TOTF) gained 0.85%, Italy’s ENI (MI:ENI) lost 0.69%, while Norwegian rival Statoil (OL:STL) advanced 0.32%.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rose 0.93% and 0.19%, while Germany’s Commerzbank (DE:CBKG) traded up 0.545%. Deutsche Bank (DE:DBKGn) broke the general trend, falling 0.56%.
Peripheral lenders showed mixed trad, Italy’s Intesa Sanpaolo (MI:ISP) advanced 0.45% but Unicredit (MI:CRDI) slumped 3.36%, while Spanish bank BBVA (MC:BBVA) gained 0.55% but Banco Santander (MC:SAN) traded down 0.43%
In London, the commodity-heavy FTSE 100 rose 0.20%, boosted by gains in basic resources.
Shares in Glencore (LON:GLEN) advanced 1.20%, Anglo American (LON:AAL) rose 1.39%, while BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) gained 0.04% and 0.57%, respectively.
Energy stocks traded mixed, as BP (LON:BP) gained 0.71% and rival Royal Dutch Shell (LON:RDSa) lost 0.28%.
Financial stocks were also mixed as shares in HSBC Holdings (LON:HSBA) traded up 0.38% and the Royal Bank of Scotland (LON:RBS) dropped 0.22%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) rose 1.38% and 1.14%, respectively.
In the U.S., Wall Street pointed a flat open. The Dow Jones Industrial Average futures inched up 0.03%, S&P 500 futures edged forward 0.02%, while the Nasdaq 100 futures added on 0.03%.