FX.co ★ European Stocks Higher to Kick Off the Week

European stocks opened the week on an upward trajectory, with the STOXX 50 index rising by 0.6% and the STOXX 600 inching up by 0.3%. Investor sentiment continues to be buoyed by expectations of a potential interest rate cut by the Federal Reserve this month. Meanwhile, market participants are closely observing political events in France, where Prime Minister François Bayrou is anticipated to lose a confidence vote today, a development that could heighten political uncertainty in the region.

As the European Central Bank (ECB) convenes this week to discuss monetary policy, no changes in interest rates are expected. However, traders will be keenly analyzing the meeting for any indications regarding the bank’s outlook for the remainder of the year. In corporate news, shares of ASML saw an over 1% increase following reports of the company’s impending status as the largest shareholder in the French artificial intelligence startup Mistral AI, which underscores efforts to enhance European technological autonomy. Additionally, SAP shares climbed by 0.8%, along with gains in Siemens’ stock.