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European Stocks Close Mixed After Cautious Session

European stocks turned in a mixed performance on Monday with investors largely making cautious moves amid concerns about inflation and higher interest rates.

Investors also looked ahead to the upcoming earnings season to assess the impact of supply chain disruptions and rising costs.

Major U.S. banks are scheduled to report their earnings this week. JP Morgan is reporting on Wednesday, followed by BofA, Morgan Stanley and Citigroup on Thursday, and Goldman Sachs on Friday.

The pan European Stoxx 600 edged up 0.05%. Germany's DAX edged dwon 0.05%, the U.K.'s FTSE 100 climbed 0.72% and France's CAC 40 gained 0.16%, while Switzerland's SMI crept up 0.06%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Netherlands, Norway, Poland, Portugal, Russia and Turkey closed higher.

Denmark, Finland, Greece, Iceland, Ireland, Spain and Sweden ended weak.

In the UK market, Anglo American Plc, Hargreaves Lansdown, Antofagasta, Rio Tinto, Glencore, BHP Group, HSBC Holdings, Lloyds Banking Group, Standard Chartered and Natwest Group gained 2 to 5.2%.

Ocado Group declined 3.7%. Intermediate Capital Group ended 2.5% down, while Tesco, JD Sports Fashion, Ashtead Group, Ferguson, CRH, Associate British Foods and Entain lost 1 to 2%.

Online fashion retailer ASOS plunged more than 13% after a profit warning.

In the French market, Carrefour declined nearly 3%. Essilor, Michelin, Bouygues, Schneider Electric, WorldLine, Teleperformance and CapGemini also ended notably lower.

ArcelorMittal rallied nearly 4.5%. Renault gained about 3.4%, while Valeo, Air France-KLM, Veolia, Faurecia, Kering and Hermes International moved up 1 to 2%.

CGG, a global geo-science technology provider, soared 17.6%. In its trading update, the company said it expects its third-quarter segment revenue to be about $270 million, up 35%, compared to the same period last year.

In Germany, Hello Fresh tumbled more than 5%. E.ON shed about 4.2%, while RWE, Zalando, MTU Aero Engines, Brenntag, Sartorius, Puma, Merck and Deutsche Post lost 1 to 3%.

Daimler, BMW, Covestro, Bayer, Continental, Fresenius Medical Care and Fresenius gained 1 to 3%.

ABN AMRO Holding NV shares gained after the lender said it has decided to replace existing four business lines with three new units organized around client segments.

Shares of Swiss-based commodity trading and mining company Ferrexpo jumped more than 5% after the firm announced inaugural decarbonisation targets.

The British pound drifted higher against its major counterparts in the wake of hawkish comments from Bank of England officials.

BoE policy maker Michael Saunders told The Telegraph on Saturday that inflationary surge "could become more persistent unless monetary policy responds."

"I think it is appropriate that the markets have moved to pricing a significantly earlier path of tightening than they did previously," Saunders said adding to expectations that the central bank is likely raise rates sooner than previously expected.

Interestingly, Saunders remarks came after a warning from Governor Andrew Bailey that inflation exceeding the BoE's goal of 2% will be damaging the economy.

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