European equities rebounded on Monday as retreating oil prices and firmer US futures reversed Friday's heavy selloff. The Eurostoxx, DAX, and FTSE 100 all traded higher, while a state election result in Germany and single-stock moves added to the session's storylines.
Oil retreat lifts European indices
European stocks opened broadly higher on Monday, with the Eurostoxx up 0.9%, the DAX up 0.8%, France's CAC 40 up 0.6%, the FTSE up 0.4%, Spain's IBEX up 0.7% and Italy's FTSE MIB up 0.7%. The pan-European STOXX 600 rose 0.56% to 638.98 points by 0710 GMT, after dipping 0.6% the previous week.
Brent crude fell roughly 2% to around $102 as markets took comfort from signs that Saudi supply could recover and that Gulf crude exports were holding up better than feared. Energy stocks slipped 0.62% as a result. Technology stocks led sectoral gains, advancing roughly 2% on strength in chip-linked names including Soitec and Aixtron. Travel stocks rose 0.86% as lower oil prices lifted airline shares.
Yields steady after Friday's selloff
The rally follows a rough end to last week, when major European indices dropped by over 1%. Autos were hit hardest, led by Volkswagen after its outlook cut, while banks came under pressure from a jump in bond yields.
Yields held calmer on Monday, with 10-year Treasury yields at 4.97% and German 10-year yields at 3.47%, down from 3.51% on Friday. US futures also firmed, with S&P 500 futures up around 0.5% and Nasdaq futures up 0.7%.
Election result and single-stock moves
Germany's DAX gains came as investors digested state election results in northeastern Germany, where projections showed the far-right AfD emerging as the largest party. Separately, data from Sweden showed long-term inflation expectations among financial and business groups eased in September.
Among individual movers, Sweden's Nordnet gained 4.6% after announcing a buyback programme. Biotech firm Ipsen fell more than 6%. AstraZeneca slipped 0.32%, even after its cancer treatment Enhertu was recommended for EU approval in early breast cancer. Attention now turns to a meeting later this week between President Trump and Chinese President Xi Jinping for signals on trade relations.
Sources: Investinglive, Investing.com
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