European (EU) stock markets pushed higher in Monday afternoon trading, with investors rotating back into risk assets after last week’s AI-led wobble and as a packed calendar of central-bank decisions comes into view.
As of around 2:00 PM GMT, the pan-European STOXX 600 was up roughly 0.8% at about 583, keeping the benchmark within striking distance of record territory. Major national indices were also firmly positive, led by France and Spain.
EU stock markets at 2:00 PM GMT: the key index levels
Here’s where the main European benchmarks stood around 14:00 GMT (with exchange data delayed by at least 15 minutes, per Reuters/LSEG):
- STOXX 600: ~583, +0.8%
- Euro STOXX 50: ~5,759, +0.7%
- Germany (DAX): ~24,271, +0.35%
- France (CAC 40): ~8,151, +1.0%
- UK (FTSE 100): ~9,747, +1.0%
- Spain (IBEX 35): ~17,030, +1.0%
That broad strength reflects a “risk-on” reset after Friday’s declines, which were partly tied to renewed nerves about AI valuations following a warning from U.S. chipmaker Broadcom on profit margins. Reuters+1
What’s driving European stocks today: central banks, delayed U.S. data, and a calmer risk mood
Monday’s bid for European equities is less about one single catalyst and more about investors positioning ahead of a week that can redefine rate expectations into year-end.
1) ECB, BoE, Riksbank and Norges Bank decisions are looming
Markets are looking ahead to central bank decisions due later this week, with the European Central Bank widely expected to hold rates, and the Bank of England heavily watched for a potential cut. Sweden’s Riksbank and Norway’s Norges Bank are also on the calendar.
In the UK, sentiment is increasingly shaped by rate expectations: a Reuters report on Monday said markets had “almost fully priced” a BoE cut, with a Reuters poll pointing to a narrowly split committee. Reuters+1
The Financial Times also reported expectations that the BoE will reduce the benchmark rate to 3.75% this week amid softer growth and easing inflation pressures. Financial Times
2) A backlog of U.S. data could jolt global risk appetite
Another key factor: investors will finally get long-delayed U.S. releases including jobs and inflation data, postponed during the U.S. government shutdown. Reuters noted that markets may interpret this week’s numbers cautiously given data-collection disruptions, but they can still move global rates and equities—especially late in the year when liquidity thins out.
3) “AI bubble” fears eased—at least for now
Risk sentiment stabilized on Monday after last week’s sell-off, according to commentary in Reuters’ European equities coverage, as traders refocused on macro and central-bank risk rather than momentum unwinds.
Sector and stock movers: banks and miners lead, healthcare drags, defence slips
Banks are doing the heavy lifting again
The strongest leadership came from European banks, which helped pull the broader market upward. Reuters’ market report said banks were among the top sector performers on the STOXX 600.
That intraday strength also fits a bigger narrative published Monday: Reuters analysis argues European bank shares may have more runway in 2026, with investors increasingly focused on AI-driven cost savings alongside earnings resilience.
Key takeaways from that analysis include:
- An index of European bank stocks is up more than 60% in 2025, after gains in 2024.
- Despite the rally, European banks were described as still trading around 1.17x price-to-book, below prior peaks and below U.S. peers, according to LSEG data cited by Reuters.
- BlackRock’s Helen Jewell highlighted banks as potential “cost winners” from AI, while UBS flagged AI as a possible upside driver for valuations and earnings in coming years. Reuters
But investors are also tracking regulation and policy risk. Separately on Monday, Reuters reported the ECB warned that measures envisaged in Italy’s 2026 budget could carry “negative implications” for bank liquidity by influencing how banks manage deposits and taxes. Reuters
Miners rise with copper; energy steadies as oil holds range
Europe’s mining names benefited from stronger metals pricing—copper was up around 2% in Reuters’ market data snapshot—while oil hovered with Brent near $61 per barrel.
For European equities, that typically translates into support for resource-heavy sectors even when broader macro visibility is mixed.
Healthcare is the standout laggard, led by Sanofi and argenx
While most sectors traded higher, healthcare underperformed in the STOXX 600 session, weighed down by sharp moves in a couple of high-profile names.
- Sanofi fell after the company flagged a second delay to the FDA decision on its experimental multiple sclerosis drug tolebrutinib, while also reporting disappointing late-stage study results—Reuters said the stock was down around 2% after earlier heavier losses.
- Dutch biotech argenx was among the weakest STOXX 600 performers after discontinuing a Phase 3 trial in thyroid eye disease, as reported in Reuters’ market coverage.
Defence stocks slip on shifting Ukraine headlines
European defence names were softer after weekend headlines around peace talks and Ukraine’s NATO stance. Reuters reported that Ukraine’s President Volodymyr Zelenskiy offered to drop NATO ambitions in the context of talks with U.S. envoys—news that weighed on major defence firms in Monday’s session.
The macro backdrop: euro zone industry improves, Germany shows signs of stabilization
Economic data also gave bulls something to work with.
Euro zone industrial output grew 0.8% month-on-month in October and rose 2.0% year-on-year, according to Eurostat data cited by Reuters—stronger than expected and supportive of the “resilience” narrative that has underpinned European risk assets into December. Reuters
Germany, the region’s biggest economy and a major driver of European equity sentiment, also delivered a steadier tone: Reuters reported Germany’s economy ministry said indicators pointed to a “robust start” to the fourth quarter even as expectations and sentiment softened. Reuters
Outlook: what investors are watching into the close and the rest of the week
With EU stock markets already positive by early afternoon, the next directional push likely depends on how traders handicap three near-term forces:
- Central bank messaging (ECB and BoE especially): even when decisions are “as expected,” the tone on inflation risks and the path for 2026 can move rates, currencies, and banks. Reuters+1
- The delayed U.S. macro slate: jobs and CPI data can reset global rate expectations quickly—particularly influential for European equities when U.S. futures drive the day’s risk mood.
- The AI trade after last week’s shakeout: Europe has been less exposed than the U.S. to the most crowded AI “momentum” names, but sentiment still transmits across regions—especially through financials and global cyclicals. Reuters+1
For now, the market’s message at 2:00 PM GMT is clear: European equities are leaning back toward risk, with banks reclaiming leadership and investors treating this week’s central-bank decisions as the main event for the final stretch of 2025.
