Europe open: Stocks gain on positive Asian cues; Remy Cointreau rallies

European stocks rose in early trade, taking their cue from a positive session in Asia as investors sifted through corporate releases.

At 0850 BST, the benchmark Stoxx Europe 600 index was up 1%, Germany’s DAX was 0.8% higher and France’s CAC 40 was up 1.1%.

Meanwhile, oil prices edged higher, with West Texas Intermediate up 0.9% at $50.41 a barrel and Brent crude up 0.9% at $51.99. The Stoxx 600 oil and gas sub-index gained 1.5%.

There are no major eurozone data releases due, but inflation figures are scheduled for release in the UK and the US on Tuesday.

Markus Huber, a trader at City of London Markets, said: “European shares are trading higher this morning receiving a boost from firmer markets across Asia overnight. The main focus today will be on UK and US inflation data. For the UK it will be important to see if the recent weakness in the GBP has started to filter through to the consumer. For the US persistent low inflation readings has been one of the main reasons why the Fed hasn't pulled the trigger already therefore any unexpected uptick could potentially rattle markets later this afternoon.

“Besides economic data traders will also keep a close eye on US earnings with Goldman Sachs and Philip Morris reporting ahead of the US open and tech heavyweight Intel after the close of US trading. Finally markets might see some profit-taking and position squaring in late trading as a whole flood of important Chinese data like retail sales, industrial production and Q3 GDP is scheduled to be released overnight.”

In corporate news, Remy Cointreau rallied after the company’s second-quarter sales beat estimates.

London-listed housebuilder Bellway also advanced after reporting a rise in full-year profit as it lifted its dividend by 40% and said demand has remained solid despite the Brexit vote.

On the downside, German automotive manufacturer Continental fell after cutting its annual profit guidance, while Kuehne & Nagel International also declined as its earnings for the first nine months of fiscal 2016 missed estimates.

Testing, inspection and certification firm Bureau Veritas was on the back foot after cutting its outlook for full-year 2016 amid weakness in the oil and gas and shipping markets.

Luxury retailer Burberry slumped after it said like-for-like sales improved in the second quarter but for the full year its expected benefit from currency movements is not as big as analyst forecasts.

Budget airline Ryanair flew a little lower after cutting its net profit guidance for full-year 2017 by 5% due to the weakening of the pound following Britain’s vote to leave the European Union.