European stocks moved higher on Monday, led by strong gains in technology shares, while another decline in oil prices helped improve investor sentiment.
The pan-European STOXX 600 rose 0.56% to 638.98 points by 07:10 GMT, recovering after falling around 0.6% during the previous week.
Most major European stock markets also traded in positive territory.
Technology Stocks Lead STOXX 600 Gains
Technology shares were among the strongest performers, with the sector gaining roughly 2%.
Chip-related companies helped drive the advance, including Soitec and Aixtron.
The broader rally in technology stocks supported the STOXX 600 and helped offset weakness in other sectors.
Lower Oil Prices Support Travel Stocks
Oil prices declined for a fourth consecutive session, helping ease concerns over energy costs.
Reports suggested that more crude supply was leaving the Gulf than previously expected, despite continued geopolitical tensions in the Middle East.
Energy stocks fell around 0.62% as crude prices moved lower.
However, travel shares gained approximately 0.86%, with airline stocks benefiting from the prospect of lower fuel costs.
Germany’s DAX Moves Higher
Germany’s DAX climbed around 0.76% during early trading.
Investors were also assessing the results of state elections in northeastern Germany.
Early projections showed the Alternative for Germany, or AfD, emerging as the largest party in the vote.
Political developments added another factor for markets to monitor alongside broader economic and geopolitical risks.
Inflation Expectations Ease in Sweden
Investors also reviewed new economic data from Sweden.
Long-term inflation expectations among financial and business groups declined in September.
Lower inflation expectations could influence future monetary policy decisions and help shape expectations for interest rates across Europe.
Trump-Xi Meeting Comes Into Focus
Attention is now shifting toward a meeting later this week between U.S. President Donald Trump and Chinese President Xi Jinping.
Investors will be watching for fresh signals on trade relations between the world’s two largest economies.
Any progress on tariffs, technology restrictions or broader economic cooperation could influence global growth expectations and market sentiment.
AstraZeneca Slips Despite Positive Drug Update
Among individual stocks, AstraZeneca fell around 0.32%.
The decline came despite the pharmaceutical company announcing that its cancer treatment Enhertu had been recommended for European Union approval for use in early breast cancer.
The market reaction suggested investors were weighing the announcement against broader company and sector developments.
Nordnet Jumps on Share Buyback
Swedish digital bank and online brokerage Nordnet gained around 4.6%.
The rally followed the company’s announcement of a new share buyback programme.
Share buybacks can support stock prices by reducing the number of shares available in the market and returning capital to shareholders.
Meanwhile, shares of biotechnology company Ipsen fell more than 6%, making it one of the weaker performers of the session.
European markets are now likely to remain focused on technology shares, oil prices, inflation expectations and developments surrounding the upcoming Trump-Xi meeting.
