Europe open: Stocks edge ahead on earnings season optimism

European stock edged ahead on Monday and into record territory as a solid start to the US earnings season provided impetus for investors.

The pan-European STOXX 600 index rose 0.16% driven by travel stocks. All major regional bourses were higher.

Markets also took heart from record highs in US markets with the Dow Jones and S&P500 ahead by 11.7% and 11.4% respectively in the year to date, while the Nasdaq is showing gains of 9% so far this year.

“Investors are feeling the sugar rush as the effects of major stimulus packages begin to translate into increasing evidence of a strong economic rebound,” said interactive investor head of markets Richard Hunter.

“In the US, the most recent data has reflected this impact, with robust showings from housing, retail sales and an improvement in the jobless claims number.”

“Meanwhile, the US banks have also reported significant profit hikes, reinforcing hopes that the recovery is firmly on track. Corporate earnings will continue to be a near term feature of investor scrutiny, with the likes of Netflix and IBM reporting this week.”

In equity news, French car parts maker Faurecia rose 1% after first-quarter sales beat market expectations, driven by strong growth in China.

Danske Bank shares were down 1.7% as Chief Executive Officer Chris Vogelzang resigned after the Dutch authorities named him as a suspect in a probe into violations of money-laundering regulations at Dutch lender ABN Amro.

ABN Amro rose 3.3% after it said it had reached a €480m settlement with prosecutors over the money laundering allegations.

Shares in Italy’s CNH Industrial fell 4.5% after ending discussions over the sale of its truckmaking business Iveco to Chinese company FAW.