Europe open: Stocks flat as investors keep eyes on earnings, Middle East

(Sharecast News) - European stocks opened flat on Monday morning as investors braced themselves for a busy week of corporate earnings amid ongoing conflict in the Middle East. The Europe Stoxx 600 Index was still struggling for direction by 1000, flat at 449.18, with gains in London offset by falls in Paris, Milan, Frankfurt and Madrid.

"While there are no major data prints at the beginning of the week, ongoing tensions in the Middle East and comments from central bank members will likely be the key areas of interest," said Manoj Ladwa, analyst at ARJ Capital.

The Bank of England's chief economist Huw Phil, European Central Bank members François Villeroy de Galhau and Luis de Guindos, and Federal Reserve policymaker Patrick Harker are all scheduled to speak.

Oil prices were holding steady above the $90-a-barrel level after jumping nearly 6% on Friday, as tensions around the Israel-Hamas war continue to rise.

"A muted start to the week for European indices suggests a sense of nervousness, particularly as the US reporting season gets underway and investors worry about a cautious tone in corporate outlooks," say Russ Mould, investment director at AJ Bell.

Following results from banking heavyweights JPMorgan and Citigroup last week, the coming few days will see earnings from the likes of Tesla, Bank of America, Deliveroo, Goldman Sachs and Netflix.

The only major economic data release of the day showed that UK houses prices rose by just 0.5% in the month to 7 October, significantly lower than the 1.4% growth seen the previous month and the lowest rate since 2008.

Pharma down on Pfizer readacross

Shares in European listed pharma giants GSK, AstraZeneca, Roche and Bayer were struggling early on after American peer Pfizer on Friday slashed its revenue guidance for the full year, citing lower-than-predicted sales of its Covid-19 vaccine. The company also said it would embark on a cost-cutting programme to save $3.5bn annually by next year, which includes layoffss.

French IT group Atos initially surged but dropped into the red on the news that its chairman Bertrand Meunier was stepping down. The stock was up 17% in early deals, but swung rapidly to a 3% loss. The move came after mounting pressure from shareholders who called for his removal.