European equities closed sharply higher on Monday, wiping out losses from the previous two sessions as investors reassessed prospects for AI deployment and infrastructure buildout. The Euro STOXX 50 advanced 1.9% to 6,290, while the STOXX Europe 600 rose 1.3% to 656.6.
UniCredit shares climbed nearly 7% after the bank reported robust earnings and indicated it could assume control of German lender Commerzbank by the end of the month. The broader banking sector also strengthened, with Santander, BBVA, and Deutsche Bank gaining between 2.5% and 3.5%. Banco BPM rallied 10.7% after France’s Crédit Agricole, which already holds roughly 30% of the Milan-based bank, reiterated its interest in acquiring the lender.
AI infrastructure names staged a strong rebound from Friday’s selloff, as fears eased that a Democrat-controlled US Congress might slow data center expansion. ASML rose 4.7%, and Infineon added 6.2%.
