European shares experienced an upswing on Monday, as worries over the stability of the U.S. banking sector began to dissipate. Remarks by U.S. President Donald Trump further soothed trade tensions, prompting a shift towards riskier assets among investors.
The STOXX 600 index saw a notable recovery, bouncing back from a nearly 1% dip the previous Friday. Industrial stocks led the charge with an impressive 1.9% increase, while defense firms pushed the broader index up by 2.8%, overcoming setbacks caused by developments in the Ukraine conflict.
Banks performed well too, climbing 1% amid positive quarterly results from U.S. regional lenders, which mitigated credit risk worries. Corporate maneuvers, like Kering’s beauty business sale to L’Oreal, and tariff discussions between Trump and Chinese officials, further influenced the market dynamics.
(With inputs from agencies.)