European markets mostly higher; Trump's Treasury pick, German Ifo in spotlight

Investing.com -- European stocks mostly edged higher Monday, with global market sentiment helped by President-elect Donald Trump's nomination as Treasury Secretary, but gains were contained by weak German business morale.  

At 06:40 ET (11:40 GMT), Germany's DAX index was up 0.4%, France's CAC 40 traded largely unchanged, while the UK's FTSE 100 rose 0.2%. Trump treasury pick sparks market optimism

Investor sentiment has been lifted by President-Elect Donald Trump’s decision to nominate Scott Bessent, founder of Key Square Group, as the next US Treasury Secretary. 

In an interview with the Wall Street Journal, published on Sunday, Bessent indicated he will prioritize delivering on election tax cut pledges, while also focusing on enacting tariffs, although has also said they should be objectives "layered in gradually".

However, data released earlier Monday showed that German business morale fell more than expected in November, with the Ifo institute stating its business climate index decreased to 85.7 in November from 86.5 in the previous month.

"The German economy is lacking strength," Ifo president Clemens Fuest said. UniCredit seeks to buy Banco BPM 

The European banking sector was in focus Monday, after Italy's UniCredit (BIT:CRDI ) launched a surprise all-share offer worth €10 billion ($11 billion) for smaller domestic rival Banco BPM (BIT:BAMI ).

The deal would, if completed, merge two of Italy’s largest lenders, with UniCredit stating that the purchase would allow the bank to “further strengthen its role as a leading pan-European banking group.”

UniCredit is also pursuing a potential deal with Germany's Commerzbank (ETR:CBKG ), although the German government has yet to bless the potential union.

Elsewhere, ITV (LON:ITV ) stock rose 8% following reports that several high-profile investors and companies had begun exploring the possibility of acquiring all or parts of the UK’s largest terrestrial commercial broadcaster.

Kingfisher (LON:KGF ) stock slumped 13% after the DIY retailer released a trading update that revealed weaker-than-expected performance for the third quarter.  Central bank updates to watch

Key speeches from central bank officials are expected to provide insights into monetary policy.

European Central Bank Chief Economist Philip Lane and Governing Council member Gabriel Makhlouf will share their perspectives on the eurozone economy, while Bank of England Deputy Governor Clare Lombardelli and Monetary Policy Committee member Swati Dhingra will discuss the UK's monetary policy outlook. Crude oil slips on Middle East ceasefire hopes

Crude prices retreated Monday, handing back some of last week’s hefty gains, on increasing hopes for a ceasefire in the troubled Middle East, an oil-rich region.

By 06:40 ET, the US crude futures (WTI) dropped 0.2% to $71.08 a barrel, while the Brent contract fell 0.2% to $74.47 a barrel.

Israel and Hezbollah were close to signing a ceasefire agreement to end hostilities in Lebanon, Axios reported on Sunday, citing Israeli and US officials. 

Israel daily The Times of Israel also reported that Prime Minister Benjamin Netanyahu was holding high-level talks over the deal, which was brokered by US officials. 

The prospect of an Israel-Hezbollah ceasefire points to lessening tensions in the Middle East, presenting a lower risk premium for oil. 

Both contracts gained around 6% last week, notching their biggest weekly gains since late September to reach their highest settlement levels since Nov. 7.

(Navamya Acharya contributed to this article.)

Source: Investing.com