European stock markets rise as banking and tech sectors lead gains

European stock markets saw strong gains on Monday, led by the banking and technology sectors. The STOXX 600 index closed 1% higher, marking its largest daily increase since July 2. This upward trend was supported by falling oil prices, which dropped below the $100 per barrel threshold for the fourth consecutive session, easing concerns regarding inflationary pressures and interest rate trajectories.

In the banking sector, the STOXX Europe 600 Banks index rose 1.7%, with notable gains from Banco BPM (4.3%) and Societe Generale (1.7%). Technology stocks also performed well, with the STOXX Europe 600 Technology index rising 1.7% as investor interest returned to artificial intelligence. Conversely, energy stocks declined following the drop in oil prices.

Major regional indices also posted gains: the German DAX rose 1.1%, the French CAC 40 increased by 0.9%, the British FTSE 100 gained 0.75%, the Italian FTSE MIB climbed 1.6%, and the Spanish IBEX 35 rose 1.1%.

In Greece, the Euronext Athens General Index reversed early losses to close up 0.55% at 2,676.02 points. This performance follows a significant rebalancing by FTSE Russell, Stoxx, and DJ S&P, which officially moves the Greek market into the category of developed markets for the first time since the 2012-2013 period.