European stock markets opened higher on Monday as investors prepared for a busy week filled with quarterly earnings updates and a heavy slate of key economic data releases.
By 03:05 ET (08:05 GMT), Germany’s DAX advanced 0.5%, France’s CAC 40 added 0.1%, and the U.K.’s FTSE 100 gained 0.2%, reflecting cautious optimism across the region.
UniCredit kicks off a packed earnings week
Europe’s earnings season is gathering pace, with several major companies—particularly banks—set to report results in the coming days. The pan-European Stoxx 600 index is trading close to record highs after logging seven positive weeks out of the past eight, as corporate earnings have generally exceeded expectations.
UniCredit was among the early standouts, reporting a record annual profit of €10.6 billion for 2025, up 14% year over year. Italy’s second-largest lender also unveiled ambitious targets, aiming for €13 billion in net profit by 2028 and committing to €30 billion in shareholder distributions over the next three years.
The bank has used part of its excess capital to build significant stakes in Germany’s Commerzbank and Greece’s Alpha Bank, although it has stopped short of pursuing full acquisitions.
More banking results are due later this week from Commerzbank, as well as U.K. lenders Barclays and NatWest Group.
Beyond the financial sector, investors are also awaiting earnings from major European corporates including Koninklijke Philips, AstraZeneca, TotalEnergies, Heineken, Mercedes-Benz Group, Siemens and L’Oréal.
Key U.S. data in focus
Away from earnings, markets are also watching for fresh growth data from both the eurozone and the U.K. However, the main focus is on a series of major U.S. economic reports due later this week.
The closely watched nonfarm payrolls report and January consumer price index data are expected to offer clearer signals on the health of the U.S. economy. These releases follow a brief delay caused by a short-lived government shutdown and come shortly after Kevin Warsh was nominated as the next chair of the Federal Reserve.
Oil prices slip on U.S.–Iran talks
Oil prices moved lower on Monday after the United States and Iran agreed to continue negotiations over Tehran’s nuclear programme, 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 crude dropped 0.9% to $62.98. Both benchmarks declined more than 2% last week—their first weekly fall in seven weeks—as geopolitical tensions eased.
Talks between Washington and Tehran resumed following discussions held on Friday in Oman, reducing fears of a military escalation in a region that plays a critical role in global oil supply.
