Follow Al Rai
European stocks rose at the close on Monday, supported by the rise in the banking and technology sectors, while oil prices fell for the fourth consecutive session, which enhanced the general desire for risk.
The European STOXX 600 index closed up 1%, recording the largest daily jump since July 2. Most European stock markets also closed higher.
This move is a positive start to the week, as investors assess whether the decline in crude oil prices may ease inflationary pressures.
The European Central Bank raised interest rates earlier this month to combat inflation, as Europe's economies are highly dependent on fuel imports, making them vulnerable to oil price fluctuations.
The banking sector was among the biggest gainers, rising 1.7%. Societe Generale's stock rose 1.7%, and Banco BPM's stock advanced 4.3%. Banco BPM's stock rose following media speculation that UniCredit and Crédit Agricole are evaluating a joint move regarding the Italian credit institution.
The technology sector gained 1.7%, with renewed interest in artificial intelligence leading to a rise in shares of chip-related companies such as Synaptics and Extron.
However, energy sector stocks fell 0.8%, as Brent crude futures are heading for the longest series of daily losses since June after reports indicated that more than expected supplies were exiting the Gulf region despite the ongoing conflict with Iran.
Attention now turns to a meeting later this week between US President Donald Trump and Chinese President Xi Jinping, seeking indications about trade relations and global economic prospects.
Know more about this story?Send us a tip
Ask about this report — answers stay grounded in its text.
