Cyclicals, small caps, and growth stocks led gains amid thin holiday trading and falling long-end bond yields.
European equities climbed 1.1% in light holiday trading, driven by cyclicals, small caps, and growth stocks. The rally followed a reversal in long-end bond yields, which supported risk sentiment.
Markets were also influenced by geopolitical developments, including peace talks, and movements in oil prices. The outperformance of riskier assets reflected a broader shift toward optimism despite subdued liquidity.
No immediate market reaction data was provided, but the move suggested a temporary rebound in investor confidence.