European stock markets advanced on Monday, offering investors a broadly positive start to the week even as sector-specific pressures weighed on parts of the market. Gains were underpinned by a combination of easing commodity prices, notably oil, and investor positioning ahead of key central bank meetings.
The continent-wide Stoxx Europe 600 closed higher by more than one percent, with Germany’s DAX and the UK’s FTSE 100 contributing meaningfully to the upward momentum. France’s CAC 40 also rose, supported by modest optimism around domestic consumption and signs of resilience in recent activity data.
Markets are positioning around the upcoming interest rate decisions from the European Central Bank and the Bank of England. With no major surprises expected in February, focus has shifted to the tone of accompanying statements, particularly any indications of future easing or macro reassessment. Bond markets reflected this sensitivity, with yields on German 10-year bunds rising slightly as investors calibrated their expectations.
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