European stocks saw a slight rise on Monday amid Middle East tensions, with the STOXX 600 index up by 0.3 per cent, according to Reuters.
The defence sector led the gains following Iran’s retaliatory attack on Israel. Market analyst Fiona Cincotta noted that the US’s decision not to support Israel’s retaliation has somewhat eased the market.
In other news, the industrial and automobile sectors also saw gains after the Ifo Institute reported an improvement in the supply situation for German manufacturers.
Software firm Temenos saw a significant 19.8 per cent jump in shares after a special committee dismissed allegations made by Hindenburg Research.
Despite these gains, the STOXX 600 is set to record its first monthly loss in six months due to uncertainties around US interest rate cuts and geopolitical tensions.
European Central Bank policymaker Francois Villeroy de Galhau added to the positive sentiment, expressing confidence in the fight against inflation and hinting at a likely interest rate cut in June.
In corporate news, Ageas shares climbed 3.2 per cent after BNP Paribas announced its agreement to acquire a 9 per cent stake in the Belgian insurer from China’s Fosun Group.
Adidas also saw a 4.3 per cent rise in shares following an upgrade by Morgan Stanley, while Julius Baer shares slid by 5 per cent as it traded ex-dividend.
Prysmian SPA shares rose by 5.2 per cent after the company announced its plan to acquire Encore Wire. However, Logitech International saw a 2.8 per cent drop in shares after Morgan Stanley downgraded the company to “underweight.”.
