European shares edge higher ahead of earnings; China adds stimulus

European shares edge higher ahead of earnings; China adds stimulus

LONDON- European shares recovered from Friday's losses on Monday as investors focused on company earnings and U.S. Federal Reserve policymakers entered a quiet period ahead of their meeting next week. Stock market moves in Asian trading were small and economic data from China was mixed: industrial output picking up but retail sales missed expectations. China's central bank unexpectedly eased policy by cutting rates on medium-term loans. Analysts expect more policy easing as growth in the world's second-largest economy has shown signs of slowing from its rapid rebound after the COVID-19 slump. At 1321 GMT, the MSCI world equity index, which tracks shares in 50 countries, was flat. Europe's STOXX 600 was up 0.6%, having recovered most of Friday's losses. Markets in the United States are closed for a public holiday, but S&P 500 futures were up 0.2% EScv1 and Nasdaq futures up 0.1%. Expectations of central banks tightening policy to combat persistent inflation have meant that equities have generally struggled to make gains so far this year and investors are rotating from growth to value stocks. Investors are focused on company earnings, which will need to be strong to prevent further losses. Goldman Sachs, BofA, Morgan Stanley and Netflix report