European stocks made a strong comeback on Monday, following a turbulent session last week, as investors navigated rising tensions in the Middle East and mounting fears of oil price-induced inflation impacting global growth. The pan-European STOXX 600 index increased by 0.5%, rebounding from an earlier 0.9% drop.
Market analysts are expressing concern over the continued standoff between the U.S. and Iran and the closure of the Strait of Hormuz, both of which heighten fears of energy-led inflation. Bond sales reflect traders’ anticipation of central banks hiking interest rates, with Germany’s 10-year bond yield reaching a peak not seen in 15 years.
Despite the volatile backdrop, some companies made headlines, including Ryanair with a significant profit report and Sonova’s promising forecast. Meanwhile, the U.S. temporarily waived sanctions on Iranian crude, suggesting a possible shift in its foreign stance, despite continued negotiations with Tehran.
(With inputs from agencies.)