20.10.202507:31:39UTC+00European Stocks Higher, Corporate News in Focus

At the start of the week, European markets displayed positive momentum with both the STOXX 50 and STOXX 600 indices experiencing an increase of 0.5%. This uptick marked a recovery from significant declines recorded last Friday, as worries regarding US banking credit began to dissipate. The market sentiment further strengthened due to reports indicating President Trump's efforts to alleviate trade tensions with China.

The luxury goods sector emerged as one of the top performers, with Kering shares rising by 4.3% following the announcement of its agreement to sell its beauty division to L’Oréal for €4 billion, which also saw its shares increase by 0.7%. The defense sector exhibited robust performance as well, with Rheinmetall posting a gain of 3.3% and Leonardo up by 2.9%, both rebounding from losses incurred in the previous trading session.

Among the large-cap stocks, most companies saw gains, including ASML Holding with a rise of 1.1%, Hermès up by 1.0%, HSBC advancing by 1.6%, and SAP increasing by 1.0%. Conversely, Thyssenkrupp experienced a sharp decline, dropping over 22% following a corporate spin-off. B&M European Value Retail also faced a significant setback, plummeting 18% after its CFO resigned, coupled with the company's revision of its profit forecast due to an accounting error.