European Stocks Ease Further

European stocks closed marginally lower on Monday as the sustained increase in energy prices added to macroeconomic headwinds for the European economy. The Euro STOXX 50 eased 0.1% to 6,530 and the STOXX Europe 600 dropped 0.2% to 656. European natural gas prices extended their surge toward multi-year highs as the prolonged blockade of LNG tankers from the Middle East magnified shortages in renewable power generation in the central part of the continent, as low river-tides forced multiple nuclear power plants to shut down. Yields in major economies rose to multi-decade highs, pressuring banks consumer-sensitive luxury companies. Santander, Deutsche Bank, LVMH, and Adidas lost between 1% and 3.4%. On the other hand, ASML rose 2.6%, tracking US AI companies following strong results from Anthropic. Also, Argenx surged 1% after reporting a successful trial for its drug Vyvgart.

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%.