Travel stocks lead Europe higher as U.S. futures drift ahead of tech earnings wave

This file photo taken on March 23, 2020 shows aircrafts of German airline Lufthansa that were immobilised at the airport in Frankfurt am Main, western Germany.

arne dedert/Agence France-Presse/Getty Images

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Travel stocks led the way higher for European stocks on Monday after a key official said transatlantic travel may soon resume.

Coming off a 0.8% drop last week — the biggest decline since the period ending Feb. 26 — the Stoxx Europe 600 SXXP, +0.10% edged up 0.2%.

Gainers included aircraft engine maker Rolls-Royce RR, +4.60%, which rose 4%, and airlines Deutsche Lufthansa LHA, +3.65% and International Airlines Group IAG, +4.35%. European Commission President Ursula von der Leyen said fully vaccinated Americans should be able to travel to Europe over the summer.

U.S. stock futures ES00, -0.08% NQ00, -0.31% were a touch lower, ahead of a big week for tech earnings and a Fed decision. President Joe Biden’s proposed infrastructure spending package faces resistance in the Senate as Sen. Joe Manchin, a key Democrat, said he only supports passing a bill with Republican support.

The stock market was unbothered by a weaker-than-forecast 0.2-point rise in the Ifo business climate index for Germany.

Also on the move, U.K. engineering group IMI IMI, +7.73% rallied 7% after lifting its earnings guidance and launching a stock buyback program.

Philips PHIA, -2.86% fell 3% as the company booked a €250 million charge for a quality issue used in some of its sleep products alongside an increased sales growth target.

Food-and-drink ingredients supplier Tate & Lyle TATE, +6.42% jumped 6% as it said it is in the process of selling a controlling stake in its primary products businesses. That followed a report in the Sunday Telegraph which said it’s begun a £1.2 billion auction for the division, which makes artificial sweeteners.

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