US Fed, Paris Outlooks Nudge European Bourses Higher Midday

07:50 AM EDT, 09/08/2025 (MT Newswires) -- European bourses tracked moderately higher midday Monday on prospects for monetary policy easing by the Federal Reserve after weak US labor market data last week, and as traders shrugged off a pending national government shake-up in Paris.

Bank and oil stocks led gainers on continental trading floors, while food issues lagged.

Investors also eyed Wall Street futures in the green, and higher closes overnight on Asian exchanges.

In other news, France may have its fifth prime minister in recent years, as the incumbent Francois Bayrou faces a confidence vote on Monday. It is uncertain whether President Emmanuel Macron will appoint another prime minister should Bayrou exit, or call for fresh parliamentary elections, according to news reports.

In economic news, the European Union may impose sanctions on China for buying Russian oil and gas, the Financial Times reported Monday. EU discussions on a new Russian sanctions package started Sunday, and are expected to include secondary measures, officials said.

The pan-continental Stoxx Europe 600 Index was up 0.2% mid-session.

The Stoxx Europe 600 Technology Index was up 0.6%, and the Stoxx 600 Banks Index gained 1.2%.

The Stoxx Europe 600 Oil and Gas Index was up 0.9%, but the Stoxx 600 Europe Food and Beverage Index fell 0.5%.

The REITE, a European REIT index, rose 0.6%, while the Stoxx Europe 600 Retail Index was down 0.1%.

On the national market indexes, Germany's DAX was up 0.5%, and the FTSE 100 in London rose 0.1%. The CAC 40 in Paris was up 0.4%, and Spain's IBEX 35 gained 0.6%.

Yields on benchmark 10-year German bonds were higher, near 2.66%.

Front-month North Sea Brent crude-oil futures were up 2% at $66.83 a barrel.

The Euro Stoxx 50 volatility index was down 2.1% at 17.23, indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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