European equities opened the week on a firmer footing, with the STOXX 50 up 0.8% and the STOXX 600 advancing 0.6%, clawing back some of last week’s losses. Risk appetite was underpinned by declining oil prices, as investors weighed continued robust crude flows through the Middle East against mounting regional tensions, including attacks on Saudi Arabia, and a US assertion that Russia and Ukraine had agreed to an “energy ceasefire”.
Market participants are also positioning for the onset of earnings season, with ASML and LVMH among the key names due to report quarterly results this week. Banks led the advance, utilities also moved higher, while energy stocks lagged under pressure from the softer oil price.
Among financials, HSBC rose 2.1%, Banco Santander gained 1.8%, BBVA added 1.6% and BNP Paribas climbed 1.0%. Automakers were another bright spot, with Renault and Stellantis up 3.1% and 2.5%, respectively. In the industrial space, Nordex jumped 3.8% after reporting a 30% year-on-year increase in project intake in the third quarter.
