European stocks started the week on a cautiously optimistic note Monday, with most major indices trading in positive territory. The pan-European Stoxx 600 was up 0.06% by 8:25 a.m. in London, signaling a modest rebound after last week’s steep losses driven by economic concerns and artificial intelligence sector volatility.
A standout performer was Swedish aerospace and defense company Saab, whose shares jumped more than 6% following the announcement of a $3.6 billion contract to supply Colombia with 17 Gripen fighter jets over the next five years. Investors welcomed the deal as a significant boost to Saab’s long-term growth prospects.
European aircraft manufacturer Airbus also saw early gains, rising 1.14%, after reports suggested it is close to finalizing a deal to deliver nearly 100 jets to flydubai, surpassing Boeing in the budget airline’s order. Meanwhile, U.K.-based advertising giant WPP climbed 5.2% amid takeover interest from private equity firms Apollo Global Management, KKR, and French peer Havas.
Despite the positive momentum, market sentiment remained cautious. Last week’s European stock sell-off, driven by worries about an AI bubble and global economic uncertainties, continues to weigh on investor confidence. In addition, recent U.S. Federal Reserve comments have tempered expectations for a December interest rate cut, with markets now assigning just a 56.1% chance of a rate pause, down from 95% a month ago.
Elsewhere, Asian and U.S. markets showed mixed movements overnight. Investors are watching geopolitical tensions, including heightened friction between Japan and China, and monitoring the global economic landscape. Monday remains quiet in Europe for major earnings or data releases, leaving traders focused on corporate news and broader market sentiment.
source: cnbc