Major European indices rose Monday, led by Germany’s DAX and Italy’s FTSE MIB, while UK’s FTSE 100 underperformed with a slight decline.
European equities closed higher as investors set aside geopolitical concerns and embraced improving risk sentiment. Germany’s DAX surged 1.45% to 26,001.32, while Italy’s FTSE MIB climbed 1.34% to 52,871.71. France’s CAC 40 and Spain’s IBEX 35 also posted gains of 1.22% and 1.01%, respectively. The UK’s FTSE 100 was the sole laggard, slipping 0.10% to 10,857.71.
Government bond yields fell across the region, signaling growing confidence in easing inflation pressures. The UK 10-year gilt yield dropped 10.1 basis points, while Italy’s 10-year BTP yield declined 8.8 basis points. Spain, France, and Germany saw yields fall by 6.7 bps, 6.1 bps, and 5.6 bps, respectively, reinforcing expectations of an impending central bank easing cycle.