FX.co ★ European Stocks Rebound

European stocks posted significant gains on Monday, recovering from the previous week's intense selling as investors reassessed the potential impact of tariffs on this year's economic growth. The Eurozone's STOXX 50 index surged by 1.5% to reach 5,242, while the pan-European STOXX 600 saw a more modest increase of 0.8% to 540, somewhat restrained by weaker performance in Swiss stocks due to rising US tariffs against Switzerland. Banks and insurance companies were at the forefront of this positive trend, paralleling robust performances in domestic bonds and the reduction of their spreads. Companies like UniCredit, Santander, Intesa Sanpaolo, BBVA, and Allianz saw their stocks climb between 3.2% and 4.5%. Industrial giants also experienced gains, recovering from last week's pressures, with Safran and Schneider Electric both advancing by over 2%. In the UK, banking stocks experienced a surge due to a favorable outcome in an auto financing case. Conversely, Swiss stocks generally declined as policymakers embarked on negotiations with their US counterparts to seek better trade terms.