The STOXX 600 index is up 0.43%, and the FTSE 100 is up 0.25%. The STOXX 600 construction and materials and industrial goods indexes are among the front runners, each gaining almost 1%.
Shares in SAAB are up over 6% after its results on Friday alongside a broader upbeat mood in the defence sector after Reuters reported French planemaker Airbus signed an agreement with Tata's Air India for 250 jets. Thales, Airbus and Rheinmetall are all up 1-2.5%.
Rate-sensitive UK homebuilders such as Persimmon and Taylor Wimpey are at the
bottom of the FTSE 100, while the European real estate sector index shed 0.5%, the
biggest drag of the STOXX index this morning.
In terms of single stocks, Bawag shares fell 5% to the bottom of the STOXX 600
after the Austrian bank's Q4 net profit slightly missed consensus expectations.
(Joice Alves)
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IS IT A BIRD? (0758 GMT)
A flying octagon was the fourth object to be shot down over North America by a U.S. missile
in little more than a week. Officials declined to say whether it resembled the large white
Chinese balloon that was shot down earlier this month, though U.S. Air Force General Glen
VanHerck is not ruling out aliens.
Markets have kept an eye on the geopolitical mystery, but more focus is on whether U.S.
inflation is earthbound or stubbornly hovering.
Economists expect Tuesday data to show monthly rates ticked up in January, but the annual
measures declined.
Revised figures on Friday showed that inflation in December was a little stronger than originally reported, and a closely-watched consumer inflation expectations survey showed a notable spike in the short-term outlook.
All of which has kept pressure on stocks and bonds and put some support behind the U.S. dollar, since the data will set the tone for the Fed's next meeting in March. The Nasdaq has now only risen once in the last six sessions, the VIX volatility index hit a one-month high on Friday, and futures were shaky in Asia trade on Monday. Stocks also slipped, falling most in Japan where traders are still trying to come to grips with the likely appointment of academic Kazuo Ueda as the next central bank governor and whether it means an exit from super-easy policy. Macro data offered downbeat mood music, too. Fourth-quarter growth in bellwether Singapore was unexpectedly revised lower. Seasonally adjusted South Korean exports fell. Key developments that could influence markets on Monday: - Fed's Bowman speaks - ECB's Lagarde participates in Eurogroup meeting
(Tom Westbrook)
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EUROPEAN SHARES SEEN LITTLE CHANGED AHEAD OF TUESDAY'S U.S. INFLATION DATA (0745 GMT)
European stocks are likely to open little changed ahead of U.S. inflation data due Tuesday
that could jolt the outlook for interest rates globally.
The near-term direction for markets could be impacted by U.S. data on consumer prices and
retail sales this week, with much resting on whether inflation continued to slow in January.
Median forecasts are for headline and core consumer prices to rise 0.4% for the month, with
sales rebounding by 1.6%.
EUROSTOXX 50 futures and FTSE futures are about flat.
An air of geopolitical mystery was supported by news the U.S air force had shot down an
airborne object near the Canadian border, the fourth object downed this month.
(Joice Alves)
*****
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