European equities opened the week cautiously, with the STOXX 600 index inching up 0.1% as of 08:29 GMT on Monday. The muted movement comes amid investor anticipation over U.S.-China trade talks and the Federal Reserve’s interest rate decision, both due later this week.
This quiet session followed a strong Friday performance, where the index surpassed its April 2 close for the first time since President Trump introduced proposals for reciprocal tariffs on key trading partners.
Market sentiment was largely neutral across major European economies. Most regional indexes posted minor gains, except for France’s CAC 40, which dropped 0.4%. The UK market remained closed for a bank holiday, limiting broader European momentum.
Energy Sector Slumps, M&A Buzz Hits Shell
Energy stocks led sector losses, falling 0.9% due to weakening oil prices. Shares of Shell dropped 1.9% amid reports that the Dutch-based oil major is exploring a potential takeover of rival BP. The company has reportedly enlisted advisers to assess the feasibility of the move, triggering investor caution.
Meanwhile, broader market indecision was compounded by a rise in eurozone inflation, challenging expectations that the European Central Bank will continue its current monetary policy path without changes.
Senior market analyst Ipek Ozkardeskaya of Swissquote Bank noted that the market hesitation is “a correction after last week’s rally” and partially a response to “unexpected inflation pressures across the eurozone.”
Select Stocks Shine Amid Cautious Sentiment
Despite broader hesitation, a few corporate names posted outsized gains:
- Novo Nordisk rose 1.9% after the U.S. FDA accepted its application for an oral version of its weight-loss drug Wegovy. A decision is expected in Q4.
- Erste Group surged 6.7% following its acquisition of 49% of Santander Bank Polska and 50% of Santander TFI, under a deal with Banco Santander SA.
- Santander Bank Polska’s shares slipped 4.7% after the announcement.
Key Takeaways:
- STOXX 600 up 0.1%; CAC 40 lags
- Energy stocks fall; Shell down 1.9%
- Novo Nordisk gains 1.9% on Wegovy news
- Erste Group jumps 6.7% on M&A deal
With global attention turning toward upcoming trade developments and U.S. interest rate signals, markets are expected to remain rangebound in the near term. The Fed is widely forecast to keep rates steady, following robust U.S. labor data from March.
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