European shares extended their rebound as investors prepared for a deluge of earnings this week and kept an eye on the latest US election developments.
The Stoxx Europe 600 Index rose 0.4%. The benchmark has mounted a recovery after last week’s decline, which was the biggest since October.
Miners and chemical stocks lagged while technology stocks outperformed, boosted by the overnight jump of the Nasdaq and fresh earnings. SAP SE rose 6.9% after the German software company reported a surge in cloud revenue growth spurred by demand for artificial intelligence. Logitech International SA gained as much as 4.9% after the Swiss maker of computer accessories delivered results ahead of expectations.
“We’re now entering the thick of the earnings season and that’s what will dominate trading this week,” said Andrea Tueni, head of sales trading at Saxo Banque France.
Among a flurry of blue-chip earnings this week, investors will be closely watching French luxury behemoth LVMH and Alphabet in the US, Tueni said. Both companies report after the close on Tuesday.
By contrast, shares in Porsche AG fell 4% after the carmaker lowered its full-year revenue forecast. France’s Edenred was the worst performer across the Stoxx 600, falling as much as 10% to the lowest intraday level since March 2022.
European stocks are now set for gains in July after uncertainty linked to the French general elections and the resilience of the eurozone economy sent equities lower in June.
