Europe markets rally to start the week on a positive note; auto supplier Continental up 7%

Donald Trump’s pledge to impose universal tariffs on all imports into the U.S. would be “incredibly inflationary” and yield no winners, according to the head of European equity strategy at Citi.

“If you put blanket tariffs, 10% on the rest of the world, 60% on China, it is going to be incredibly inflationary,” Citi’s Beata Manthey told CNBC’s “Squawk Box Europe” on Monday.

“[Trump’s team] don’t want that. They are already making it clear that when tariffs come, they are going to be progressive, they are going to think very hard [on] how not to make it inflationary. And, of course, high-level protectionism like what has been suggested initially on the top level, there are no winners from that, right?”

Alongside consumers, Manthey said, companies could be exposed to the cost implications of universal tariffs.

“So, this is the view of our strategists in the U.S., if you put blanket tariffs [in], they could reduce the earnings potential for the U.S. companies up to 7%. That’s why I say there are no winners from that policy — and Trump knows about it,” she added.

— Sam Meredith

German automotive and industrial supplier Continental rose more than 7% during early morning deals, soaring to the top of the regional benchmark index after reporting a third-quarter profit beat.

Danish shipping giant Maersk, meanwhile, slipped around 2% shortly after the opening bell.

— Sam Meredith

European stocks were higher shortly after Monday’s opening bell.

The pan-European Stoxx 600 index traded up around 0.7%, with all sectors in positive territory.

— Sam Meredith

Germany’s Continental on Monday posted stronger-than-expected third-quarter core profit and lowered its sales guidance for the second time this year.

The automotive and industrial supplier reported adjusted earnings before interest and taxes of 873 million euros ($934 million) for the three-month period through to the end of September. That beat expectations in a company-provided consensus, with the company citing price adjustments and “disciplined cost management.”

Looking ahead, Continental said it now expects sales in 2024 to come in between 39.5 billion euros and 42 billion euros, down from a previous forecast of 40 billion euros to 42.5 billion euros, pointing to weak industrial development in Europe and North America.

— Sam Meredith

Oil prices were little changed from the previous session, as energy market participants monitored the threat of supply disruption from a U.S. storm.

International benchmark Brent crude futures with January expiry traded 0.1% higher at $73.95 per barrel, while U.S. West Texas Intermediate crude futures traded flat at $70.36.

— Sam Meredith

Bitcoin reached a fresh all-time high near $81,000 and futures premiums soared, in a clear sign that investors believe the record-run in the world’s largest cryptocurrency is poised for even more gains on the back of U.S. elections that saw a swell of pro-crypto candidates win office.

Open interest in bitcoin’s price surpassing $90,000 rose to more than $2.8 billion on the popular Deribit derivatives exchange, one of a few crypto native platforms that offers futures trading. Deribit encompasses most of the offshore options market.

Read the full story here.

— MacKenzie Sigalos

One European stock tanked on the news that Donald Trump had won the 2024 presidential election. However, analysts at investment banks suggest that investors have overreacted to fears of a downturn for the sector.

The consensus price target of all analysts points to an upside of more than 50% for the stock.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Investment bank Nomura has screened for Japanese stocks with “high bitcoin price sensitivity,” following a surge in the cryptocurrency’s price.

The bank noted that “stocks of exchange operators plus semiconductor, IT, and nonferrous names track BTC but are currently lagging.”

It comes as analysts say bitcoin prices could hit $100,000 by the end of the year following President-elect Donald Trump’s victory.

CNBC Pro looks at 10 stocks from the investment bank’s screen that stand out for having substantial upside potential, according to FactSet’s consensus price targets.

CNBC Pro subscribers can read more here.

European markets are expected to open in positive territory Monday.

The U.K.’s FTSE 100 index is expected to open 19 points higher at 8,159, Germany’s DAX up 48 points at 19,263, France’s CAC up 21 points at 7,359 and Italy’s FTSE MIB up 109 points at 34,090, according to data from IG.

Earnings are set to come from Continental, Hannover Re and Mediobanca. There are no major data releases.

— Holly Ellyatt