Europe midday: Auto makers in focus on Nexperia report

(Sharecast News) - European shares extended gains on Monday with auto stocks in focus on hopes that Dutch chip manufacturer Nexperia would resume shipments from its China factory.

The pan-regional Stoxx 600 index was up 0.47% to 574.6 at 1215 GMT with all major bourses higher.

Shares in Renault, Mercedes Benz and Valeo all made gains on reports the US administration would make an announcement on Nexperia, where the Dutch government recently seized control of the company - owned by Chinese company Wingtech - which prompted Beijing to block Nexperia products from leaving China, disrupting supply for automakers globally.

Eyes are also on a Bank of England policy meeting this Thursday for an interest rate decision.

"Rates are widely expected to stay at 4% on Thursday, but the real debate is whether policymakers deliver a cut in December, with odds hovering near 50-50. With stubborn inflation and slowing growth, expectations for the year ahead are in the balance," said Hargreaves Lansdown analyst Matt Britzman.

"Gold edged up to $4,010 per ounce after an early dip, as traders weighed fading hopes for aggressive US rate cuts against easing safe-haven demand following a US-China trade truce."

"Federal Reserve Chair (Jerome) Powell signalled last week's cut could be the last for now, trimming market odds of a December move to about 70% from over 90%. With geopolitical tensions cooling and monetary policy uncertainty lingering, this mini rally looks cautious rather than convincing."

"Brent crude oil climbed to $65.10 a barrel this morning, marking a fourth straight day of gains as OPEC+ signalled it will pause production hikes in early 2026 after a modest boost in December. The move eases fears of oversupply, while fresh US sanctions on Russian oil majors and weekend drone strikes on key infrastructure add geopolitical risk to the mix."

In economic news, manufacturing activity in China slowed last month, according to a private survey.

RatingDog's purchasing managers' index for October slowed to 50.6, missing forecasts of 50.9 and a fall from September's 51.2.

Elsewhere on the equities front, Ryanair rose after posting a 42% rise in second quarter post-tax profit to �1.72bn - in line with estimates.

BP was up after announcing it had has sold its non-controlling interests in the Permian and Eagle Ford midstream of its US onshore oil and gas division for $1.5bn to funds managed by investment firm Sixth Street.

Reporting by Frank Prenesti for Sharecast.com