European stocks recovered in afternoon trading to close with slight gains on Monday, trimming losses from the previous week on fresh dovish signals from key FOMC members.
The Eurozone’s STOXX 50 rose 0.4% to 5,540 and the pan-European STOXX 600 advanced 0.3% to 564.
Tech shares traded in the bloc closed sharply higher, tracking the sentiment in US exchanges to mark some respite from their selling last week.
Risk sensitive sectors also benefited from Fed Governor Waller support for a rate cut next month.
ASML advanced 3% and Infineon jumped 3.5%, while Siemens and Schneider also closed higher.
Banks were also firmly higher, with Nordea and BBVA rising 1.5% each, while UniCredit and Intesa Sanpaolo slipped as major Italian banks were detached form dividends.
On the other hand, Novo Nordisk tanked 6.5% after the company announced that a pill version of Ozempic failed to slow the progression of Alzheimer’s disease in a large trial.