ARMH Arm Holdings Plc ADS Each Representing 3 Ordinary Shares (MM)

By Christopher Whittall 

Global stocks mostly edged higher Monday as investors shrugged off the weekend's events in Turkey, signaling the country's failed coup attempt wouldn't have a wider impact on financial markets.

The Stoxx Europe 600 was up 0.2% recently, led higher by technology shares after U.K.-based chip designer ARM Holdings PLC confirmed Monday it agreed to a buyout offer worth more than $32 billion.

Futures markets pointed to a 0.2% opening gain for the Dow Jones Industrial Average, which climbed to a record close Friday amid upbeat U.S. economic data.

The Turkish lira showed signs of stabilizing Monday after registering its sharpest one-day fall since October 2008 on Friday following news of the attempted coup. The lira was up 2% against the U.S. dollar at 2.9568 recently. Turkey's central bank said Sunday it would provide limitless necessary liquidity to the country's banks to ensure financial stability.

Turkey's main BIST-100 index was down 4.8% Monday.

Investors view the events in Turkey as "isolated," said Paul McNamara, a fund manager at GAM Holding AG, without a broader impact on other markets.

"Looking at Venezuela and Ukraine, individual markets can have isolated blowups as long as the causes are specific to them," he said.

European technology shares rose sharply following confirmation that Japanese telecommunications giant SoftBank Group Corp. is set to buy ARM Holdings in an all-cash deal. Shares in ARM Holdings jumped 43% on the news.

Asian markets mostly inched higher with the exception of the Shanghai Composite Index, which fell 0.4% as investors weighed China's latest growth data released Friday against a slowdown in house price rises, according to data published on Monday. Markets in Japan were closed for a public holiday.

Investors' attention will turn later to the U.S. corporate earnings season, which got under way last week.

Bank earnings will remain in focus, with Bank of America Corp. due to release earnings Monday and Goldman Sachs Group Inc. results expected Tuesday and Morgan Stanley due Wednesday.

U.S. bank stocks have rallied broadly following a solid batch of earnings from major lenders last week. J.P. Morgan Chase & Co. and Citigroup Inc. beat expectations, while results from Wells Fargo & Co. came in line with estimates.

The U.S. financial sector "does look like an area for upside, also for more dividend growth," said Lucy Macdonald, chief investment officer for global equities at Allianz Global Investors. "You can't write off all the financials."

Elsewhere, investors will be looking ahead to the European Central Bank policy meeting on Thursday--its first since the U.K. voted to leave the European Union.

Investors pinning their hopes on central bank stimulus following the Brexit vote have helped push stocks higher in recent weeks.

The Bank of England kept interest rates on hold last week, but signaled it is likely to ease policy in August. Economists expect the ECB to strike a dovish tone at its Thursday meeting, but to stop short of boosting its stimulus measures.

Investors bought government bonds Monday, following a selloff last week that ended a sharp post-Brexit rally after data releases pointed to strength in the U.S. economy.

The yield on the 10-year Treasury note fell around 0.02 percentage point to 1.572% Monday as prices rose, according to Tradeweb.

"The bond yield in the U.S. is going to be the biggest driver of all assets as always," said Ms. Macdonald.

Despite their recent gains, Ms. Macdonald said that equities look less overvalued than other assets. "At least they have some growth," she added.

In currencies, the euro was up 0.1% at $1.1051, while the yen was 0.8% weaker against the dollar at Yen105.6630.

Brent crude, the international oil benchmark, rose 0.2% to $47.70 a barrel. Gold was up slightly at $1329 an ounce.

Write to Christopher Whittall at christopher.whittall@wsj.com

(END) Dow Jones Newswires

July 18, 2016 05:47 ET (09:47 GMT)

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