Europe stock markets rise on corporate earnings

The DAX index in Germany rose 0.4%, the CAC 40 in France was up 0.3% and the FTSE 100 in the U.K. added 0.4%

European stock markets rose Monday, as investors digested a string of significant corporate earnings ahead of the release of key German inflation data.

At 07:15 GMT, the DAX index in Germany rose 0.4%, the CAC 40 in France was up 0.3% and the FTSE 100 in the U.K. added 0.4%.

European stock markets were higher Monday, with sentiment boosted by stronger-than-expected earnings from U.S. tech titans Microsoft and Alphabet, which sparked a rally on Wall Street on Friday.

There are more U.S. earnings to study this week from the "Magnificent Seven" tech megacaps, with Amazon due on Tuesday, and Apple, on Thursday.

The quarterly earnings season continues apace in Europe as well.

Vivendi stock dropped 0.9% despite the French media group saying its first-quarter revenue increased strongly, boosted by strong growth at its three core businesses, Canal+ Group, Lagardere and Havas.

Philips stock added 1.7% after the Dutch medical devices maker delivered first-quarter results largely in line with expectations, but also said it has reached a $1.1 billion settlement in the U.S. related to its Respironics ventilators, and backed its full-year guidance.

BBVA stock gained 1.4% after the Spanish lender’s first-quarter net profit beat earnings forecasts due to an increase in lending income in Mexico and Spain, a trend it expects to improve this year in its home country.

In economic news, Spanish consumer prices increased 3.3% on an annual basis in April, a monthly rise of 0.7%.

This remained above the ECB’s 2% medium-term inflation target, but more attention will be paid to the German state CPI data, due later in the session, given the importance of the German economy within the eurozone.

The ECB has earlier indicated that it cut its deposit rate in June,  and while policymakers have made it clear there will likely be multiple cuts this year, they have been less clear on exactly how many.

That said, a June cut is still likely to be several months before the U.S. Fed decides to ease its monetary policy, especially after Friday’s PCE price index data - the Fed’s preferred measure of inflation - came in hotter than expected for March.