Eurozone equities rise on oil price drop, KI optimism

European equity indices opened higher Monday, buoyed by a decline in oil prices and renewed optimism over potential diplomatic progress in the Middle East, as political uncertainty in Germany faded. The EuroStoxx 50 index rose 1.31% to 6,317.73 points, while the FTSE 100 climbed 0.75% to 10,739.55 and the Swiss SMI advanced 0.88% to 13,906.97. Outside of the eurozone, the decline in crude prices offset lingering concerns over German regional elections, which had raised short-term volatility. Meanwhile, expectations of US-Iran and US-China talks at the United Nations General Assembly—starting Tuesday—fueled hopes for de-escalation in the region. US President Donald Trump reportedly signaled openness to a meeting with Iranian President Masoud Pezeshkian, while discussions between the US and China on artificial intelligence (KI) expanded beyond economic cooperation to include shared security concerns. US Treasury Secretary Scott Forry noted that both nations sought to align on common goals and threats, including KI risks. Tech stocks led gains across Europe, with the Stoxx Europe 600 Technology index breaking above its 21-day moving average for the first time since late August, signaling a short-term positive trend. ASML and Infineon were among the top performers, reflecting investor interest in US KI policy developments. In Switzerland, AMS-Osram’s shares surged 16% after the sensor and semiconductor firm announced a breakthrough in VCSEL technology, partnering with BizLink to develop multicore fiber solutions for KI applications. The banking sector also saw gains, with Societe Generale’s shares up 3% and the bank outlining plans to allocate €21 billion by 2029 toward dividends and share buybacks, aiming for higher long-term returns. In contrast, Novo Nordisk fell 5%, as concerns persisted over its Semaglutid patent cliff and valuation, despite guidance for average growth matching competitors by 2030. Logistics firm Kühne & Nagel rose 5.3% in Zurich, benefiting from a long-term partnership with Amazon. The broader market reflected a mixed but cautiously optimistic tone, with energy and KI-driven sectors leading gains amid a backdrop of geopolitical uncertainty and structural shifts in global economic policy.