European Stocks Close Higher

European stocks closed higher for a second session on Monday, tracking the positive momentum for most sectors in US equity markets on upbeat earnings projections. The Euro STOXX 50 added 0.4% to 6,169 and the STOXX Europe 600 gained 0.6% to 635. Sell-side firms signaled that global earnings growth is expected to remain robust ahead of the incoming results-sharing season, supporting most sectors despite the elevated yields backdrop. LVMH added 1.2% before releasing its third-quarter revenues, while Hermes rose over 2% to consolidate a strong session for luxury brands. Meanwhile, banks enjoyed some respite with Santander, BBVA, and ING adding close to 2%. On the other hand, ASML fell 1.5% amid a broad pullback for companies in AI infrastructure. The Eurozone's largest economy is due to report results this week.

European stocks opened the week higher, with the STOXX 50 gaining 0.8% and the STOXX 600 rising 0.6%, recovering some ground after a weak previous week. Sentiment was supported by falling oil prices, as investors weighed resilient flows through the Middle East against escalating regional tensions, including attacks on Saudi Arabia, and a US claim that Russia and Ukraine had agreed to an “energy ceasefire”. Investors are also preparing for the start of earnings season, with ASML and LVMH set to report quarterly results this week. Banking stocks led the gains, while utilities also advanced, whereas energy shares came under pressure. HSBC rose 2.1%, Banco Santander gained 1.8%, BBVA added 1.6% and BNP Paribas climbed 1.0%. Automakers Renault and Stellantis were among the top performers, advancing 3.1% and 2.5%, respectively. Nordex jumped 3.8% after reporting a 30% year-on-year increase in project intake in the third quarter.

European equity markets were poised to open higher on Monday as falling oil prices lifted sentiment after President Donald Trump said Moscow had agreed to release diesel supplies to global markets and claimed that Russia and Ukraine had reached an “energy ceasefire” effective immediately. However, escalating tensions in the Middle East continued to weigh on investor confidence, as a deadly attack on Riyadh’s airport prompted Trump to consider joining Saudi Arabia in retaliatory action against Houthi militants in Yemen. Meanwhile, the European economic calendar is relatively quiet, with no major data releases scheduled, while French luxury goods group LVMH is set to report earnings. Investors are also looking ahead to Wednesday’s results from Dutch semiconductor equipment maker ASML Holdings for fresh insights into demand related to artificial intelligence. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both up around 0.3%.