Stocks Climb on Earnings Optimism, Treasuries Gain – Europe Market Wrap

Following a string of impressive earnings surprises in Europe and Tesla’s spectacular results, stocks were poised for their first day of gains this week.

As data revealed that a downward trend in private-sector activity continued into a second month, government bonds in Europe rose on hopes of a rate cut. The purchasing managers’ figures did nothing to allay concerns that the economy of the area is reverting to stagnation and that the European Central Bank will likely cut interest rates by half a point in December.

In contrast to their rivals’ profits, UK gilts stood out. Amid rumours that UK Chancellor Rachel Reeves is seeking to greatly expand her borrowing capacity in the upcoming budget, investors sold the debt out of concern for a deluge of fresh issuance.

Oil prices rose in commodities as traders waited for an Israeli strike on Iran in retaliation.