Finance
European stocks recover, banks lead; ECB decision, US data in focus
Published by Global Banking & Finance Review®
Posted on December 15, 2025
3 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 15, 2025
3 min readLast updated: January 20, 2026
European stocks rose, led by banks, as investors focus on ECB decisions and US data. STOXX 600 nears record high amid positive market sentiment.
By Ragini Mathur and Purvi Agarwal
Dec 15 (Reuters) - European shares ended higher on Monday in broad-based gains led by banks, kicking off a week packed with central bank decisions and delayed U.S. economic data on a positive note, as investors returned to risk assets after last week's subdued finish.
The pan-European STOXX 600 closed 0.82% higher at 582.97, putting it 0.6% away from a record high. Major regional bourses also advanced, with Spain's ending at a record close - up 1.2%.
The STOXX 600 slipped into negative weekly territory at the last moment on Friday, mirroring Wall Street after U.S. chipmaker Broadcom's profit margin warning sparked renewed concerns about a potential bubble in artificial intelligence stocks.
The market staged a broader recovery on Monday, with 19 of the 20 main sectors trading higher, led by heavyweight banks, which rose 1.8% to close at a level last seen in May 2008.
Insurers rallied a 1.2% jump, and travel stocks climbed 1.3%, further boosting the main index.
XTB's research director Kathleen Brooks said that risk sentiment was stabilizing after the sell-off as markets turned their attention to macroeconomic factors this week.
An index of automakers was the only outlier, down 0.14%, after two straight days of gains. The losses were limited by an expected reprieve for regional carmakers, with Brussels set to reverse the EU's effective ban on sales of new combustion‑engine cars from 2035.
On the geopolitical front, Ukrainian President Volodymyr Zelenskiy resumed talks in Berlin with envoys of U.S. President Donald Trump. As part of a deal to end the nearly four-year-old war, the U.S. negotiators told Ukraine to withdraw its forces from the eastern Donetsk region.
Major defence firms slipped, with Rheinmetall and Hensoldt down 2.6% and 1.2%, respectively. On the flip side, Ukraine-exposed miner Ferrexpo jumped 7.1%.
The STOXX 600 has had a positive December so far, as optimism around U.S. interest rate cuts and progress on a Russia-Ukraine ceasefire lifted sentiment.
"Markets are expecting earnings growth and looser monetary policy, so many investors think this is a supportive market environment for European indices," said Roland Kaloyan, head of European equity strategy at Societe Generale.
On the macro front, the European Central Bank's monetary policy decision is due on Thursday, with markets widely expecting it to keep rates on hold.
Market sentiment shifted last week following unexpectedly hawkish comments from ECB policymaker Isabel Schnabel, who suggested a rate hike could be the next move, though it would not happen in the near term.
Decisions from Sweden's Riksbank, the UK's Bank of England and Norway's Norges Bank are also expected this week.
Delayed jobs and inflation data in the U.S. this week could also set the tone for global markets heading into 2026.
Among others, Argenx shares lost 4.4% after the Dutch biopharma company discontinued a phase 3 trial for its thyroid eye disease treatment.
French Drugmaker Sanofi fell 3.9% after expectations grew that the U.S. Food and Drug Administration would delay a decision on its multiple sclerosis drug, tolebrutinib.
Schneider Electric rose 2.5% after brokerages lifted the target price on the French electrical equipment maker.
(Reporting by Purvi Agarwal and Ragini Mathur in Bengaluru; Editing by Sherry Jacob-Phillips and Tasim Zahid)
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic goals such as controlling inflation, consumption, growth, and liquidity.
Equity represents ownership in a company, typically in the form of stocks. It signifies the value of shares issued by a company, giving shareholders a claim on the company's assets and earnings.
Financial markets are platforms where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives. They facilitate the exchange of capital and liquidity.
A central bank is a national institution that manages a country's currency, money supply, and interest rates. It oversees monetary policy and aims to maintain financial stability.
Investment refers to the allocation of resources, usually money, in order to generate income or profit. It can involve purchasing assets such as stocks, bonds, or real estate.
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