European Stocks Rise Slightly, Financials Support STOXX Amid High Energy
European stocks closed mostly higher on Monday (May 18), shedding some of the previous session's pressure as markets reassessed the impact of macro headwinds on corporate earnings projections. The EURO STOXX 50 edged up to 5,832, while the STOXX 600 gained 0.3% to 609.
Sentiment remained fragile as the US-Iran standoff continued over the weekend, with no sign of urgency to reopen the Strait of Hormuz to oil and goods exports. This kept energy prices high and kept European government bond yields elevated, limiting room for further gains.
The financial services sector was a key support, with several major issuers paring earlier losses. Allianz, Nordea, AXA, and Munich Re each rose more than 1%, reflecting a defensive rotation into quality financial stocks amid inflation and interest rate uncertainty.
On the corporate front, Deutsche Boerse jumped 5% after reports that TCI increased its stake in the exchange operator, a unique catalyst that boosted sentiment. Meanwhile, ASML fell 3.2% as global AI infrastructure stocks declined, holding back the technology sector's performance.
The market now awaits further developments in the Middle East—particularly the status of Hormuz and energy prices—as well as the direction of European yields, which will determine how much cost and interest rate pressures will impact the earnings outlook of regional issuers in the coming weeks.
Source: Newsmaker.id
