European equities turned lower on Monday, erasing modest early gains, with the STOXX 50 hovering around the flatline and the STOXX 600 down 0.2% as investors weighed political and geopolitical developments in the UK and the Middle East. In London, British Prime Minister Keir Starmer confirmed his widely expected resignation, paving the way for Greater Manchester Mayor Andy Burnham—elected to Parliament last week—to potentially succeed him.
On the geopolitical front, the US and Iran agreed on a roadmap targeting a comprehensive peace agreement within 60 days, despite renewed tensions and threats over the weekend. Oil prices retreated, with Brent crude slipping below $80 per barrel.
Sector performance was mixed. Luxury stocks were among the laggards, with LVMH down 1.6%, Hermès off 4.6%, and L’Oréal losing 1%. In contrast, technology names outperformed: ASML Holding rose 1.3%, STMicroelectronics advanced 2%, and Infineon Technologies gained 4.9%, though SAP declined 2.1%.
