European Markets Surge Amid Corporate Earnings and Central Bank Decisions

European shares hit a two-week high boosted by telecoms and travel stocks amid corporate earnings season and central bank interest rate expectations. Ericsson shares soared with strong 5G demand, while energy stocks fell. The ECB is anticipated to cut rates by 25 basis points this week.

On Tuesday, European shares reached a new two-week high as investors kept a close eye on the corporate earnings season and anticipated key economic signals from the central bank's upcoming interest rate decision.

The pan-European STOXX 600 index edged up 0.2% at 0710 GMT, propelled by gains in telecoms and travel stocks. The European Central Bank is set to announce its monetary policy update on Thursday, with market expectations leaning towards a rate cut of 25 basis points.

Recent statistics indicate that the euro zone economy is struggling more than at the last policymakers' meeting in September. Ericsson surpassed third-quarter earnings and sales forecasts, thanks to revitalized demand for 5G equipment in North America, leading to an 8% increase in the Swedish company's stock price. However, energy stocks declined by 2.5%, mirroring a drop in oil prices following reports of Israel's assurances to the U.S. not to target Iran's oil facilities, which allayed concerns over potential supply disruptions. TotalEnergies shares fell 3.7% following news of sharply decreased third-quarter downstream results attributed to lower refining margins in Europe and beyond. Meanwhile, Deutsche Bank saw a 1.6% decline, reflecting the pricing of 16 million of its shares at 16.01 euros each, as reported by a transaction bookrunner.

(With inputs from agencies.)