At the construction site of the new headquarters of the automotive supplier and tire manufacturer Continental
This was CNBC's live blog covering European markets.
LONDON — European stocks closed higher on Monday, starting a data-packed week on a positive footing as investors assessed what Donald Trump's presidency could mean for markets.
The pan-European Stoxx 600 index provisionally closed 1.1% higher, with most sectors and major bourses in positive territory. Construction and materials stocks led the gains, ending nearly 2% higher.
The benchmark index logged its third consecutive weekly loss on Friday as market participants assessed the likelihood of universal tariffs from President-elect Trump.
Investors will scrutinize a fresh batch of economic data this week, including inflation readings in Germany and the U.S. and U.K. gross domestic product (GDP).
Wall Street also traded higher Monday after a strong rally last week; the U.S. stock market climbed to another round of records on Friday, as the Dow and S&P 500 wrapped up their best week in a year after Trump's election win.
U.S. stocks also got a boost from the Federal Reserve after it lowered interest rates by a quarter percentage point last Thursday. Global investors will be awaiting the latest U.S. inflation readings due later in the week.
Money Report
Asia-Pacific markets fell on Monday after China's latest stimulus measures underwhelmed and its October inflation numbers came in lower than expected.
U.K. banks boost FTSE 100
A strong showing from U.K. banks has helped the FTSE 100 rally 1%, according to Chris Beauchamp, chief market analyst at online trading platform IG.
"The UK government's sale of more of its stake is another vote of confidence in NatWest, another step in the long road away from 2008's emergency government takeover," said Beauchamp in a Monday note.
"Meanwhile the banking sector's day was further improved by Barclays, which is still basking in the glow of Trump's win," he added.
NatWest and Barclays were both trading 3.8% higher as of 4:11 p.m. London time. The FTSE 100 was last trading up 0.66%.
- April Roach
‘This is not a short-term price reaction,’ says strategist on recent U.S. market moves
Christian Dery, macro strategist at Capital Fund Management, says he suspects the price reaction we're seeing following Donald Trump's election victory, will continue over the next several months.
"The U.S. is running a 6% deficit currently, and the Republican proposals are going to increase that on the order of 2-3%, so it'll be running 9-10% deficits in the U.S. — again very stimulative," Dery told CNBC's "Street Signs Europe" on Monday.
- April Roach
U.S. stocks open higher
Stocks were higher shortly after the opening bell on Monday, as Wall Street continues its postelection rally from last week.
The S&P 500 gained 0.3%, while the Nasdaq Composite advanced 0.2%. The Dow Jones Industrial Average climbed 353 points, or 0.8%.
— Brian Evans
Chinese government's drip feed and piecemeal policy support isn't ideal for markets, economist says
Duncan Wrigley, chief China economist at Pantheon Macroeconomics, says Beijing is looking to solve the country's issues in a systemic fashion over several years whereas markets are hoping for a much bigger, faster reaction.
Blanket tariffs would be incredibly inflationary, strategist says
Citi Head of European Equities Beata Manthey Told CNBC that blanket tariffs would not create any winners, with a potential risk to U.S. profit margins.
Puma shares up 4%
German sportwear manufacturer Puma rose toward the top of the European Stoxx 600 after Morgan Stanley and Barclays both raised their target price for the stock.
Shares of the company were up 4.6% at around midday London time.
— Sam Meredith
Bitcoin tops $82,000 as crypto euphoria shows no sign of waning
Bitcoin hit another high on Monday, trading 3.6% higher at $82,216 by 6:58 ET, according to Coin Metrics. Other coins also got a boost, with ether up 1.8%, trading around $3,204 after topping $3,000 over the weekend.
Susannah Streeter, from investment platform Hargreaves Lansdown, said President-elect Donald Trump's pledge to go "all in on crypto" has pushed bitcoin to fresh highs.
"He's made an about turn on supporting the industry and is now vowing to turn the U.S. into the crypto capital of the world. Bitcoin speculators are betting on a more clement regulatory environment, and have expectations that the authorities may build up a reserve crypto fund, helping lift ongoing demand," she said in a research note on Monday.
— Katrina Bishop
Gold prices fall
Gold prices fell on Monday morning, extending losses after notching its worst weekly performance since late May on Friday.
Spot gold fell 0.8% to $2,661.49 per ounce as of 11:00 a.m. London time, slipping further away from the key $2,700 level.
It comes as investors continue to assess what president-elect Donald Trump's election victory could mean for U.S. interest rates.
— Sam Meredith
Construction stocks up nearly 2%
Construction and materials stocks rose nearly 2% to lead gains during morning deals.
Shares of Germany's Heidelberg Materials rose more than 4% after JPMorgan and Citigroup both raised their target price for the stock. The building materials company, which is up nearly 50% year-to-date, notched a fresh record high on Monday morning.
French construction materials group Saint-Gobain and Italy's Buzzi were also trading higher, both up around 3.6%.
— Sam Meredith
'Very difficult' to see how European stocks can match Wall Street gains, strategist says
European companies are likely to continue to underperform U.S. stocks, according to Christian Dery, macro strategist at Capital Fund Management.
When asked about the outlook for European stocks relative to Wall Street, Dery said the equity risk premium appeared to be in line with historical norms.
"Europe just structurally has a lot of problems at the moment. And, as I said, fiscal is part of the issue. So, you have countries like France and Italy that are bumping up into their fiscal constraints, we had Mario Draghi's report on how to improve Europe and fiscal was a big cornerstone of that," Dery told CNBC's "Street Signs Europe" on Monday.
"As I mention, with Germany, the issue is around fiscal and spending. So, I suspect without a big fiscal impulse in Europe, it is just going to be very difficult to see a similar performance to the United States," he continued. "The outperformance will continue in the U.S. relative to Europe."
The pan-European Stoxx 600 benchmark index has climbed nearly 7% year-to-date, while the S&P 500 index has notched gains of more than 25% over the same period.
— Sam Meredith
There are no winners if Trump imposes universal tariffs, Citi strategist says
Donald Trump's pledge to impose universal tariffs on all imports into the U.S. would be "incredibly inflationary" and yield no winners, according to the head of European equity strategy at Citi.
"If you put blanket tariffs, 10% on the rest of the world, 60% on China, it is going to be incredibly inflationary," Citi's Beata Manthey told CNBC's "Squawk Box Europe" on Monday.
"[Trump's team] don't want that. They are already making it clear that when tariffs come, they are going to be progressive, they are going to think very hard [on] how not to make it inflationary. And, of course, high-level protectionism like what has been suggested initially on the top level, there are no winners from that, right?"
Alongside consumers, Manthey said, companies could be exposed to the cost implications of universal tariffs.
"So, this is the view of our strategists in the U.S., if you put blanket tariffs [in], they could reduce the earnings potential for the U.S. companies up to 7%. That's why I say there are no winners from that policy — and Trump knows about it," she added.
— Sam Meredith
Stocks on the move: Continental up 7%, Maersk down 2%
German automotive and industrial supplier Continental rose more than 7% during early morning deals, soaring to the top of the regional benchmark index after reporting a third-quarter profit beat.
Danish shipping giant Maersk, meanwhile, slipped around 2% shortly after the opening bell.
— Sam Meredith
Europe stocks open higher
European stocks were higher shortly after Monday's opening bell.
The pan-European Stoxx 600 index traded up around 0.7%, with all sectors in positive territory.
— Sam Meredith
Germany's Continental posts profit beat, cuts sales guidance
Germany's Continental on Monday posted stronger-than-expected third-quarter core profit and lowered its sales guidance for the second time this year.
The automotive and industrial supplier reported adjusted earnings before interest and taxes of 873 million euros ($934 million) for the three-month period through to the end of September. That beat expectations in a company-provided consensus, with the company citing price adjustments and "disciplined cost management."
Looking ahead, Continental said it now expects sales in 2024 to come in between 39.5 billion euros and 42 billion euros, down from a previous forecast of 40 billion euros to 42.5 billion euros, pointing to weak industrial development in Europe and North America.
— Sam Meredith
Oil prices mixed
Oil prices were little changed from the previous session, as energy market participants monitored the threat of supply disruption from a U.S. storm.
International benchmark Brent crude futures with January expiry traded 0.1% higher at $73.95 per barrel, while U.S. West Texas Intermediate crude futures traded flat at $70.36.
— Sam Meredith
Over $2.8 billion bet on bitcoin topping $90,000 as it hits all-time high
Bitcoin reached a fresh all-time high near $81,000 and futures premiums soared, in a clear sign that investors believe the record-run in the world's largest cryptocurrency is poised for even more gains on the back of U.S. elections that saw a swell of pro-crypto candidates win office.
Open interest in bitcoin's price surpassing $90,000 rose to more than $2.8 billion on the popular Deribit derivatives exchange, one of a few crypto native platforms that offers futures trading. Deribit encompasses most of the offshore options market.
— MacKenzie Sigalos
CNBC Pro: This wind stock tanked after Trump's win. Analysts now say buy the dip, giving it major upside
One European stock tanked on the news that Donald Trump had won the 2024 presidential election. However, analysts at investment banks suggest that investors have overreacted to fears of a downturn for the sector.
The consensus price target of all analysts points to an upside of more than 50% for the stock.
CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: Nomura names Japanese stocks that trade like bitcoin — and analysts give one over 80% upside
Investment bank Nomura has screened for Japanese stocks with "high bitcoin price sensitivity," following a surge in the cryptocurrency's price.
The bank noted that "stocks of exchange operators plus semiconductor, IT, and nonferrous names track BTC but are currently lagging."
It comes as analysts say bitcoin prices could hit $100,000 by the end of the year following President-elect Donald Trump's victory.
CNBC Pro looks at 10 stocks from the investment bank's screen that stand out for having substantial upside potential, according to FactSet's consensus price targets.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
European markets: Here are the opening calls
European markets are expected to open in positive territory Monday.
The U.K.'s FTSE 100 index is expected to open 19 points higher at 8,159, Germany's DAX up 48 points at 19,263, France's CAC up 21 points at 7,359 and Italy's FTSE MIB up 109 points at 34,090, according to data from IG.
Earnings are set to come from Continental, Hannover Re and Mediobanca. There are no major data releases.
— Holly Ellyatt
