Jul 18, 2022 03:25AM ET
By: AnalysisWatch
European stock markets traded higher on Monday, helped by Wall Street's rebound, but this week investors will be on alert ahead of the expected resumption of an important gas pipeline, as well as a key European Central Bank meeting.
As of 03:25 GMT, Germany's DAX was trading 0.7% higher, France's CAC 40 was up 0.7%, and Britain's FTSE 100 was up 1.1%.
Major European indexes built on Friday's gains, helped in particular by strong gains on Wall Street, with the blue-chip Dow Jones Industrial Average index rising more than 650 points, or 2.2%, as investors bet the Federal Reserve will be less aggressive at its upcoming meeting than previously feared.
However, those gains may prove harder to achieve as the week progresses, as the European Central Bank is set to meet on Thursday.
At that meeting, the bank is expected to raise interest rates for the first time in a decade as it tries to rein in soaring inflation, the latest illustration of which is due on Tuesday with eurozone consumer price index data for June.
Tensions in Europe are also created by concerns over whether Russia will resume gas supplies through the Nord Stream 1 pipeline, while Italy is on the brink of political turmoil if Prime Minister Mario Draghi resigns.
In corporate news, shares in Deliveroo fell 1.4 percent after the food delivery group cut its 2022 forecast, citing a sharp slowdown in second-quarter order-volume growth, the latest stark illustration of the contraction in consumer spending.
The Finnish bank reported a rise in second-quarter operating profit, well above market expectations, helped by growth in interest earned on loans.
Shares in H & M fell 0.8 percent after the world's second-largest fashion retailer said it had decided to cease operations in Russia, joining a growing list of companies exiting the country altogether.
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