The City of London financial district at sunrise.<\/p>\n
Alexander Spatari | Moment | Getty Images<\/p>\n
LONDON \u2014 European stocks are expected to start the new trading week on a positive note after a volatile few days in which investors weighed concerns over bad loans on Wall Street.<\/p>\n
The U.K.’s FTSE<\/a> index is expected to open 0.32% higher on Monday, Germany’s DAX<\/a> is seen up 0.67%, France’s CAC 40<\/a>\u00a0is expected to rise 0.62% and Italy’s FTSE MIB<\/a> is seen 0.65% higher, according to data from IG.<\/p>\n Regional markets closed in the red on Friday, with the pan-European Stoxx 600 down 0.95%, as concerns over the U.S. banking sector hit European sentiment.<\/p>\n Last week, U.S. lenders Zions and Western Alliance\u00a0disclosed issues tied to bad loans<\/a>, leading shares of several financial heavyweights and regional banks lower, before they rebounded on Friday.<\/p>\n “European banks are up 40% this year … and hence there is a high level of expectations in the market,” Christian Edelmann, managing partner for Europe at Oliver Wyman, told CNBC’s “Europe Early Edition” on Monday.<\/p>\n “The credit jitters are really more in the U.S. around the defaults that we’ve seen around two banks that have reported so far. When you look at European reporting \u2014 and yes, you just said most of it is coming this week and later \u2014 results were pretty solid; no negative surprises on the European banks so far.” <\/p>\n It’s a quieter day for earnings and data releases in Europe on Monday, with Swedish engineering firm Sandvik<\/a> the only major company set to report financial results.<\/p>\n We’ll be getting more earnings as the week goes on, however, with L’Oreal<\/a> reporting Tuesday and\u00a0SAP,<\/a> Barclays<\/a>, Heineken<\/a> and Svenska Handelsbanken<\/a> among the companies reporting on Wednesday. The next day, Kering<\/a>, Roche<\/a>, Unilever<\/a> and Lloyds Banking Group<\/a> will be reporting earnings.<\/p>\n Kering on Sunday said it had agreed to sell its beauty and fragrance business to L’Oreal for 4 billion euros ($4.66 billion).<\/p>\n Overnight, U.S. stock futures moved higher as investors turned their attention toward a slew of big-name earnings reports and inflation data expected in the coming days.<\/p>\n Netflix<\/a>,\u00a0Coca-Cola<\/a>,\u00a0Tesla<\/a>\u00a0and\u00a0Intel<\/a>\u00a0are among the names set to report stateside this week, while the September consumer price index is also set for release on Friday and is expected to show that inflation remains hot.<\/p>\n Traders will be paying special attention to the report, given the ongoing data blackout caused by the U.S. government shutdown.<\/p>\n