European stocks closed higher on Monday, supported by gains in the banking and technology sectors, while oil prices fell for a fourth consecutive session, boosting overall risk appetite.
The pan-European STOXX 600 index closed 1% higher, marking its biggest one-day gain since July 2. Most European stock markets also ended the session in positive territory.
The move marked a positive start to the week as investors assessed whether falling crude oil prices could ease inflationary pressures.
The European Central Bank raised interest rates earlier this month to combat inflation, as Europe’s heavy reliance on fuel imports leaves its economies vulnerable to fluctuations in oil prices.
The banking sector was among the biggest gainers, rising 1.7%. Societe Generale shares gained 1.7%, while Banco BPM rose 4.3%. Banco BPM shares advanced following media reports that UniCredit and Crédit Agricole were considering a joint move involving the Italian lender.
The technology sector also gained 1.7%, as renewed interest in artificial intelligence lifted chip-related stocks, including Soitec and Aixtron.
Energy stocks, however, fell 0.8%, with Brent crude futures heading toward their longest losing streak since June after reports indicated that more supplies than expected were leaving the Gulf region despite the ongoing conflict with Iran.
Investors are now turning their attention to a meeting later this week between US President Donald Trump and Chinese President Xi Jinping, seeking signals on trade relations and the outlook for the global economy.
Source: Reuters
