Europe close: Markets manage gains ahead of busy earnings week
By Josh White
Date: Monday 03 Nov 2025
(Sharecast News) - European shares edged higher on Monday as gains in automotive stocks offset mixed performances across major indices, with investors eyeing a Bank of England policy decision later in the week.
The pan-European Stoxx 600 inched up 0.02% to 572.01, while Germany's DAX rose 0.63% to 24,110.43.
France's CAC 40 slipped 0.14% to 8,109.79, and London's FTSE 100 fell 0.16% to 9,701.37.
Patrick Munnelly at TickMill said global stock markets "began November positively, suggesting that the seven-month rally in risk assets may continue, supported by strong tech earnings and signs of reduced tensions between the US and China."
He noted that European contracts "indicated a positive start" as traders balanced optimism over earnings with caution ahead of key central-bank decisions.
Carmakers lead regional risers
Automakers led the advance amid optimism that Dutch chip manufacturer Nexperia could soon resume shipments from its China plant, easing supply bottlenecks that have plagued the industry.
Renault gained 2.23%, Mercedes Benz climbed 1.96%, and Valeo added 2.71%.
Reports suggested the US administration may announce measures to address the impasse after the Dutch government seized control of Nexperia from Chinese owner Wingtech, prompting Beijing to block exports from its Chinese factory.
In London, Russ Mould at AJ Bell said "the FTSE 100 got off to a solid start with oil helping to grease the wheels of the index."
He added that OPEC+'s decision "to pause further output hikes at the start of next year, amid concerns about a glut of supply, helped give oil prices a lift and, in turn, boosted UK market heavyweights BP and Shell."
BP advanced 0.66% after selling its non-controlling interests in the Permian and Eagle Ford midstream of its US onshore oil and gas business to funds managed by Sixth Street for $1.5bn.
Mould added that "Prudential was among the top FTSE 100 risers as it continued to ride the wave of goodwill engendered by a strong set of third-quarter numbers last week," while "Vodafone was the top faller on the FTSE 100 after UBS downgraded its recommendation on the stock to 'sell', citing several competitive risks."
In corporate news, Ryanair rose 0.32% in London after reporting a 42% increase in second-quarter post-tax profit to €1.72bn, in line with market forecasts.
Mould said Ryanair was "flying high with its second-quarter performance," with "passenger numbers increased, customers paying more for tickets on average, and its planes fuller."
However, he noted that "comparative figures are going to become harder to beat as its financial year goes on," explaining the company's cautious guidance.
Investors also looked ahead to a busy week of earnings, with results due from Ferrari and Aramco on Tuesday, BMW and Vestas on Wednesday, and Commerzbank, Diageo, Rheinmetall, AstraZeneca and Maersk on Thursday, followed by Richemont on Friday.
Data shows tentative signs of manufacturing improvement
Economic data showed tentative signs of improvement across Europe's manufacturing sector.
The eurozone's final HCOB manufacturing PMI rose to 50 in October from 49.8, marking a return to expansion territory for the first time since mid-2022.
Hamburg Commercial Bank's chief economist Cyrus de la Rubia described the gain as a "very delicate sprout of economic recovery," noting that growth remained mild amid stagnant new orders and lower employment.
Patrick Munnelly said "focus shifts to German data: factory orders, industrial production, and trade," and that markets were "closely monitoring whether the improvement in PMIs will translate into sustained growth momentum."
In the UK, manufacturing output ticked up for the first time in a year, with the S&P Global PMI climbing to 49.7 in October from 46.2 in September.
The rebound was supported by increased inventories and the restart of Jaguar Land Rover's production after September's cyberattack, though overall demand remained subdued.
"There are real concerns that the bounce could prove short-lived," said Rob Dobson, director at S&P Global Market Intelligence.
Meanwhile, US manufacturing data painted a mixed picture, with S&P Global's PMI rising to 52.5 in October, while the ISM gauge slipped to 48.7, signalling continued contraction.
In China, RatingDog's manufacturing PMI eased to 50.6 from 51.2, below expectations, as new orders slowed sharply amid rising trade uncertainty, though employment rose for the first time in seven months.
Munnelly noted that "equities hover near record highs despite Federal Reserve chair Jerome Powell's warning that a rate cut in December is not assured and mixed signals from tech earnings."
Reporting by Josh White for Sharecast.com.
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