European Stocks Rise for 3rd Day

European stocks moved higher on Tuesday, with both the STOXX 50 and STOXX 600 rising 0.7%, extending gains from the previous two sessions and marking their first three-day winning streak in a month. Pressure in the bond market eased, at least temporarily, although investors continued to monitor the political situation in Spain and France. Oil prices also edged lower amid signs of resilience in Middle Eastern crude exports. At the sector level, healthcare stocks led the gains, while oil and gas shares underperformed. Novartis (1.6%), AstraZeneca (2%), Novo Nordisk (0.8%) and Sanofi (1.8%) were higher. The banking sector also booked solid gains, including Banco Santander (1.2%), BBVA (1.5%), UniCredit (1.9%) and UBS (1.3%). In contrast, Schneider Electric (-2%), Repsol (-1.4%) and Telecom Italia (-1.4%) were among the worst performers.

European equity markets were headed for a higher open on Tuesday as global risk sentiment improved despite concerns about elevated bond yields, with technology and artificial intelligence stocks leading the gains. Investors also kept a close watch on the euro and regional bond markets as worries over high debt levels and political uncertainty in France persisted, while Spain’s upcoming snap election added to the region’s challenges. On the data front, markets will focus on German factory orders, French industrial production and Eurozone retail sales, alongside construction activity reports from across Europe. The regional calendar is otherwise quiet, with no major corporate earnings or announcements scheduled for Tuesday. In premarket trading, futures for the Euro Stoxx 50 and Stoxx 600 were both up around 0.4%.

European equities mostly advanced on Monday, with the STOXX 50 gaining 0.2% and the broader STOXX 600 adding 0.3%. Spanish stocks led regional gains, surging more than 1% after Prime Minister Pedro Sánchez called a snap election for November 29 following a parliamentary setback for his government. France moved in the opposite direction, with the CAC 40 falling around 1% as investors remained concerned about the country’s fiscal outlook and political uncertainty ahead of the 2027 presidential election. The pressure on French assets was also reflected in the euro, which weakened to a 17-month low. Schneider Electric was among the biggest drags, plunging more than 9% after announcing plans to acquire US software company PTC for $22.6 billion. The transaction represents Schneider’s largest deal to date and raised concerns among investors. Banco Santander offered some support to the wider market, climbing more than 4% during the session.