European shares closed higher on Monday, boosted by gains in technology stocks as investor risk appetite improved amid growing expectations of a U.S. interest rate cut next month and progress toward peace in Ukraine.
اضافة اعلان
The pan-European Stoxx 600 index rose 0.31% to 563.83 points at the close, following its largest weekly decline since late July on Friday.
Wall Street led the upward trend after Federal Reserve Board member John Williams indicated on Friday the possibility of a near-term rate cut, increasing expectations of a reduction during the Fed’s December meeting, despite ongoing divisions among officials over policy in light of uncertainties about the strength of the U.S. economy.
“Ignited by this optimism after just one Fed official suggested a near-term rate cut, we see positive effects in U.S. markets, which also reflect favorably on European markets,” said Ipek Ozkardeskaya, chief market analyst at Swissquote Bank.
Technology stocks led gains in the Stoxx 600, climbing 1.4% after sharp losses in the previous session, with AI-related companies driving the surge. ASML jumped 3.1%, Infineon 3%, and Siemens Energy 5.5%, rebounding from a 10.1% fall on Friday.
European defense stocks fell 2.1% amid ongoing U.S.-Ukraine talks in Switzerland aimed at ending the war in Ukraine. Washington and Kyiv issued a joint statement on Sunday after Geneva talks, presenting a “revised peace framework” following adjustments to a U.S. proposal that Kyiv and European allies deemed compatible with Kremlin ambitions.
Major defense companies including Rheinmetall, Renk, Hensoldt, and Saab saw shares drop between 4.3% and 5.6%.
Meanwhile, Bayer surged 9.3% to lead the Stoxx 600 after preliminary clinical trial results provided a boost to one of its major cardiovascular drugs. Conversely, Novo Nordisk fell 5.8% in its worst single-day performance since October 17, following disappointing Alzheimer’s drug trial results.
Reuters
