The STOXX 600 index saw a modest increase on Monday, driven by gains in financial shares, as investors looked to a bustling earnings week that could reveal corporate Europe’s health. The index rose by 0.13% to close at 618.52 points, with Spain’s bank-heavy benchmark leading regional market gains at a 1% rise.
European stocks faced volatility in late January and early February due to concerns over artificial intelligence potentially affecting traditional businesses’ profits. However, a better-than-expected earnings season, despite significant U.S. tariffs, helped the STOXX index hit a record high last week, marking its third consecutive week of gains.
Bank and insurance stocks, previously troubled by AI-related disruptions, rebounded on Monday, with banks climbing 1.4% and insurance stocks up 0.7%. Meanwhile, declines in tech and luxury shares, along with a 0.6% drop in basic materials, highlighted sector-specific challenges. Key earnings from companies like Orange, Zealand Pharma, and Airbus are awaited this week.