European equity markets started the week with little movement on Monday, as investors stayed cautious ahead of key macro events due later this week. There was no impulse from Wall Street because the US trading week begins on Tuesday due to a holiday. The European Central Bank is due to announce its interest-rate decision on Thursday, followed on Friday by US inflation data that could be significant for US monetary policy. Persistent tensions in the Persian Gulf weighed on risk appetite after renewed mutual attacks in the US-Iran war, and rising oil prices provided a headwind.
Supported by gains in technology and AI-related stocks, the largest index winners, the Euro Stoxx 50 rose 0.17% to 6,403.99, its third consecutive positive session. Outside the euro area, the UK FTSE 100 closed slightly lower at 10,822.13. In Switzerland, the SMI fell 0.81% to 14,279.38, dragged down mainly by heavyweight shares Novartis and Swiss Re, both of which declined by more than 3%.
Novartis reported a setback in a study of the lipoprotein-lowering drug Pelacarsen, which did not deliver the hoped-for protection against heart attack, stroke and cardiovascular death. Swiss Re was the SMI's biggest loser, down 3.6%, after warning at the traditional Monte Carlo industry meeting of growing risks from wildfires.
The European oil sector index led gains, up 1.3% on higher oil prices. Eni and TotalEnergies were among Euro Stoxx winners, rising 0.6% and 1.6% respectively. Larger gains were seen in individual AI-related names: Infineon shares rose almost 7%, the day's top performer, following earlier gains in Asian sector peers. ASML and Schneider Electric shares were also in demand.
