European Stocks Rebound
European stocks rose on Monday, with energy shares leading the way as oil prices jumped. The Stoxx Europe 600 Index gained 0.7%, while the U.K.’s FTSE 100 Index rose 0.9%.
Oil Price Jump
Oil prices rose after Saudi Arabia announced it would cut production by an additional 1 million barrels a day in February and March. Brent crude, the international benchmark, rose 2.3% to $54.76 a barrel.
Energy Shares Lead the Way
Energy shares were the biggest gainers, with Royal Dutch Shell Plc and BP Plc both rising more than 2%. The sector was the best performer in the Stoxx 600, rising 2.3%.
Tech Shares Also Rise
Technology shares also rose, with the Stoxx 600 Technology Index gaining 1.2%. The index was led higher by semiconductor stocks, with ASML Holding NV and Infineon Technologies AG both rising more than 3%.
Travel and Leisure Shares Struggle
Travel and leisure shares were the worst performers in the Stoxx 600, falling 1.2%. The sector was dragged lower by airlines, with British Airways owner International Consolidated Airlines Group SA and Ryanair Holdings Plc both falling more than 3%.
European Markets Mixed
European markets were mixed, with Germany’s DAX Index rising 0.5%, while France’s CAC 40 Index fell 0.2%. The euro was little changed at $1.2109.
U.S. Futures Rise
U.S. stock futures rose, with the S&P 500 Index set to open 0.5% higher. The Dow Jones Industrial Average was set to open 0.4% higher, while the Nasdaq Composite was set to open 0.6% higher.
Asian Markets Mixed
Asian markets were mixed, with Japan’s Nikkei 225 Index closing 0.2% lower, while Hong Kong’s Hang Seng Index rose 0.3%. China’s Shanghai Composite Index was little changed.
European Markets Look Ahead
European markets are looking ahead to the start of earnings season, with several major companies set to report this week. Investors will also be watching for any news on Brexit negotiations and the U.S. stimulus package.
The European markets have been on a roller coaster ride in recent months, with the Stoxx 600 Index rising more than 10% since the start of the year. The index is still down more than 10% from its all-time high in February 2020.
The energy sector has been the biggest driver of the rally, with oil prices rising more than 20% since the start of the year. Technology shares have also been strong, with the Stoxx 600 Technology Index rising more than 15% since the start of the year.
Travel and leisure shares have been the worst performers, with the sector down more than 20% since the start of the year. The sector has been hit hard by the pandemic, with airlines and other travel-related companies suffering from the lack of demand.
Looking ahead, investors will be watching for any news on Brexit negotiations and the U.S. stimulus package. The European markets will also be looking ahead to the start of earnings season, with several major companies set to report this week.
The European markets have been on a roller coaster ride in recent months, but the recent rally has been driven by optimism that the worst of the pandemic is behind us. With oil prices rising and technology shares leading the way, the markets are looking ahead to a brighter future.