European equity markets recovered on Monday as investors returned to technology stocks following last week’s sell-off, while renewed activity in the banking sector provided further support.
The pan-European STOXX 600 rose around 1%, reversing earlier weakness as investors took advantage of lower share prices across the semiconductor and technology sectors. Germany’s DAX gained 1.5%, France’s CAC 40 advanced 1.1% and the UK’s FTSE 100 rose 0.8%.
Technology shares were among the strongest performers, with ASML, ASM International and Soitec recording gains of more than 2%. SAP also moved higher, while Infineon gained almost 4% as investors reassessed valuations following the recent correction.
Banking stocks provided another source of support. Banco BPM gained around 10% after Credit Agricole proposed merging its Italian subsidiary with the lender, potentially creating Italy’s third-largest bank. UniCredit also advanced after increasing its full-year profit target following stronger-than-expected quarterly earnings.
Nvidia remained a focus for investors after its shares fell amid reports of an independent board investigation involving chief executive Jensen Huang. However, the weakness did not prevent a broader recovery across European technology stocks.
Falling oil prices and easing concerns about further escalation in the Middle East also helped support market sentiment.
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