European Stocks Rise Amid Conflict Pause
European stock markets closed slightly higher on Monday (July 27th), supported by falling bond yields and energy prices. The STOXX Europe 600 index rose 0.2% to 645.6, while the EuroSTOXX 60 index moved to 6,290.
Market sentiment improved after the United States and Iran halted their attacks. The pause in conflict raised hopes for a recovery in energy exports from the Middle East and helped ease inflation concerns.
Banking stocks posted strong gains. Santander and BNP Paribas rose more than 2%, while Intesa Sanpaolo rose 1% ahead of its earnings reports this week.
The software sector also surged ahead of major US technology companies' earnings reports. SAP shares surged 7.8%, supported by the launch of the second phase of its €10 billion share buyback program and better-than-expected second-quarter results.
Conversely, chipmaker shares remained under pressure due to concerns about the massive spending in the artificial intelligence sector. ASML plunged 8.4% and Infineon fell 4.5%, while oil weakness weighed on shares of Shell, BP, Siemens Energy, and E.ON.
The German DAX index rose more than 1% to above 25,400, while the UK's FTSE 100 gained 0.4% to above 10,780. European markets have the potential to remain strong if energy prices and bond yields continue to fall, although technology financial reports and central bank decisions could still trigger volatility. (ar
Source: Newsmaker.id
