European Stocks Close Modestly Higher

(RTTNews) - European stocks closed higher on Monday after a cautious session, with investors looking ahead to the data on U.S. consumer price and producer price inflation for further clarity about the Federal Reserve's interest rate path.

Stocks struggled earlier in the session amid persisting concerns about the tensions in the Middle East. Israel struck Hamas and Hezbollah terror facilities in Khan Yunis and Lebanon in overnight strikes, the Israel Defense Forces said earlier today.

The U.S. earning season also remained on investors' radar, with major banks including JP Morgan Chase and Citigroup due to report their financial results on Friday.

Energy stocks drifted lower, weighed down by weak oil prices after Saudi Arabia announced price cuts to customers in Asia.

The pan European Stoxx 600 gained 0.38%. The U.K.'s FTSE 100 edged up 0.06% and Germany's DAX climbed 0.74%, while France's CAC 40 and Switzerland's SMI both gained 0.4%.

Among other markets in Europe, Belgium, Finland, Greece, Iceland, Netherlands, Poland, Russia, Spain, Sweden and Turkiye closed higher.

Austria, Denmark, Norway and Portugal ended weak.

In the UK market, Melrose Industries rallied 4%. B&M European Value Retail, Legal & General, Smith & Nephew, Prudential, Rolls-Royce Holdings and Taylor Wimpey gained 2.5 to 3.1%.

Centrica, Marks & Spencer, IMI, Auto Trader Group, Howden Joinery, Ocado Group, Airtel Africa and Rightmove also moved up sharply.

Royal Dutch Shell dropped about 3%. BP ended 2.6% down, while Glencore, Endeavour, United Utilties and Anglo American Plc ended lower by 1 to 1.6%.

In Germany, Siemens Energy climbed more than 5%. Qiagen gained about 2.7%, while Infineon, Adidas, Siemens Healthineers, Continental, Mercedes-Benz, Zalando and HeidelbergCement advanced 1.3 to 2%.

Fresenius and Covestro both drifted down nearly 1.5%. RWE, Merck and Daimler Truck Holding also closed weak.

In the French market, Airbus Group climbed 2.5%. Essilor, Teleperformance, Pernod Ricard, Kering, Bouygues, Michelin, Capgemini, WorldLine, Safran, L'Oreal and Societe Generale gained 1 to 2%, while TotalEnergies ended nearly 3% down.

In economic news, data from Destatis showed Germany's exports and imports rebounded in November.

Exports posted a monthly growth of 3.7%, reversing a fall of 0.4% in October, the data showed. Imports surged 1.9%, following a 1.1% drop in October.

Separate data revealed that Germany's factory orders rose less than expected in November. Orders climbed 0.3% on a monthly basis in November, in contrast to the revised 3.8% decline in October. But the pace of expansion was weaker than the expected rate of 1%.

U.K. job placements declined again at the end of the year, albeit at softer rates as employers remained cautious about hiring, a survey report compiled by S&P Global showed.

Recruitment consultancies registered further decline in hiring but both permanent placements and temp billings decreased at softer rates, the KPMG/REC Report on Jobs said.