European Shares Mixed Amid Inflation Concerns

European stocks traded mixed on Monday amid concerns about inflation and higher interest rates.

Traders also awaited cues from the upcoming earnings season to assess the impact of supply chain disruptions and rising costs.

The U.S. earnings season kicks off this week, with JPMorgan reporting on Wednesday, followed by BofA, Morgan Stanley and Citigroup on Thursday, and Goldman on Friday.

The pan European Stoxx 600 slipped 0.1 percent to 456.66 after declining 0.3 percent on Friday.

The German DAX and France’s CAC 40 index were marginally lower while the U.K’s FTSE 100 was up 0.2 percent, led by gains in commodity-related stocks.

The British pound drifted higher against its major counterparts in the wake of hawkish comments from Bank of England officials.

BoE policy maker Michael Saunders told The Telegraph on Saturday that inflationary surge “could become more persistent unless monetary policy responds.”

“I think it is appropriate that the markets have moved to pricing a significantly earlier path of tightening than they did previously,” Saunders said adding to expectations that the central bank is likely raise rates sooner than previously expected.

Interestingly, Saunders remarks came after a warning from Governor Andrew Bailey that inflation exceeding the BoE’s goal of 2 percent will be damaging the economy.

ABN AMRO Holding NV advanced 1.4 percent. The Dutch lender said it has decided to replace existing four business lines with three new units organized around client segments.

Surging commodity prices helped lift energy and mining stocks in London.

Miners Anglo American, Antofagasta jumped around 3 percent while oil giant BP Plc advanced 1.8 percent and Royal Dutch Shell added 1.6 percent.

Lender HSBC climbed 1.4 percent, Lloyds Banking Group rose 0.6 percent and Barclays gained half a percent as traders ramp up bets of a November interest rate increase.

Ferrexpo jumped 4 percent after announcing inaugural decarbonisation targets.

Online fashion retailer ASOS plunged more than 9 percent after a profit warning.

CGG, a global geo-science technology provider, soared 14.5 percent in Paris. In its trading update, the company said it expects its third-quarter segment revenue to be about $270 million, up 35 percent, compared to the same period last year.

LEG Immobilien shares fell about 1 percent after the German company entered into a letter of intent for the acquisition of about 15,500 residential units of Adler Group. Shares of real estate investor Adler Group declined 2.3 percent.