European stocks opened the week on a cautious footing, with both the STOXX 50 and STOXX 600 hovering around the flatline as investors kept a close eye on developments in the Middle East and political tensions in Germany. In Saxony-Anhalt, the far-right AfD scored a historic victory in state elections, marking a significant setback for Chancellor Merz. His CDU posted its weakest result in the state since German reunification.
Oil prices moved higher, supported by renewed US–Iran-related strikes, adding to geopolitical uncertainty. Market participants are also focused on this week’s ECB policy meeting, where the central bank is widely expected to raise interest rates.
In corporate news, Novartis shares fell more than 3% after its cholesterol drug disappointed in a closely watched trial. By contrast, semiconductor and tech-related names outperformed: ASML Holding climbed 1.2% and Infineon gained 1.8%. The energy sector traded in positive territory as well, led by TotalEnergies, which advanced 1.6%.
