European Stocks Head for Higher Open

European stocks advanced on Monday, with the Stoxx 50 rising around 0.3% to trade near record highs, while the Stoxx 600 gained about 0.2%, also remaining close to its peak. The positive tone reflected a broader global equity rally, as investors continued to monitor developments in the Middle East while energy markets opened the week relatively calmly. Sentiment was also supported by declining expectations of a Federal Reserve rate hike at its September meeting. Basic resources were among the strongest performers, with Antofagasta, Hochschild Mining and Glencore advancing more than 2% on firmer metals prices. Technology stocks also moved higher, while the energy sector edged up. Among individual stocks, argenx surged more than 7% after reporting positive topline results from a Phase 3 trial of its drug efgartigimod. Meanwhile, heavyweight ASML Holding gained more than 2.5%, while AstraZeneca rose over 1%.

European equity markets were headed for a higher open on Monday as soft US economic data reduced expectations for an imminent Federal Reserve interest rate hike, supporting global risk sentiment. Investors also looked past heightened tensions in the Middle East as Israel launched fresh strikes on Lebanon, while President Donald Trump prepared new sanctions against Iran. In Europe, there are no major economic or earnings releases scheduled for Monday, though investors will look ahead to the ECB’s latest Monetary Policy Meeting Accounts this week after it left key interest rates unchanged in July. Other key economic reports due this week include the Eurozone and German ZEW economic surveys, as well as PMI readings from across the region. In premarket trade, Euro Stoxx 50 and Stoxx 600 futures were both up around 0.3%.

European stocks closed marginally lower on Friday as tech stocks pulled back and pharmaceuticals retreated. The STOXX Europe 50 eased by 0.1% form yesterday's record high to 6,541 and the STOXX Europe eased 0.2% to 658. ASML dropped 0.2% to trim its sharp advance this week as markets continued to assess spending on AI infrastructure by hyperscalers, with both Anthropic and OpenAI set to undergo IPOs this year. Likewise, Infineon dropped 1.3%. Meanwhile, a negative session for European drug manufacturers saw Argenx and Sanofi fall 3.2% and 1.2%, respectively. In turn, banks and insurers were mostly higher despite a surge in European sovereign yields, especially in the long end of the curve, as the rhetoric that the Federal Reserve could allow higher inflation rates regained ground. Deutsche Bank and Intesa Sanpaolo gained nearly 1%, while Allianz and Munich Re jumped over 1% for the insurers.