PrintEuropean stocks recover, banks lead; ECB decision, US data in focus
BY Reuters | ECONOMIC | 12/15/25 12:03 PM EST*
Zelenskiy, US envoys, and European leaders meeting in Berlin
*
Sanofi falls as it expects a delayed FDA decision on the drug
*
Argenx down after halt to eye disease studies for efgartigimod
(Updates after market close)
By Ragini Mathur and Purvi Agarwal
Dec 15 (Reuters) - European shares ended higher on Monday in broad-based gains led by banks, kicking off a week packed with central bank decisions and delayed U.S. economic data on a positive note, as investors returned to risk assets after last week's subdued finish.
The pan-European STOXX 600 closed 0.82% higher at 582.97, putting it 0.6% away from a record high. Major regional bourses also advanced, with Spain's ending at a record close - up 1.2%.
The STOXX 600 slipped into negative weekly territory at the
last moment on Friday, mirroring Wall Street after U.S.
chipmaker Broadcom's
The market staged a broader recovery on Monday, with 19 of the 20 main sectors trading higher, led by heavyweight banks , which rose 1.8% to close at a level last seen in May 2008.
Insurers rallied a 1.2% jump, and travel stocks climbed 1.3%, further boosting the main index.
XTB's research director Kathleen Brooks said that risk sentiment was stabilizing after the sell-off as markets turned their attention to macroeconomic factors this week.
An index of automakers was the only outlier, down 0.14%, after two straight days of gains. The losses were limited by an expected reprieve for regional carmakers, with Brussels set to reverse the EU's effective ban on sales of new combustion-engine cars from 2035.
On the geopolitical front, Ukrainian President Volodymyr Zelenskiy resumed talks in Berlin with envoys of U.S. President Donald Trump. As part of a deal to end the nearly four-year-old war, the U.S. negotiators told Ukraine to withdraw its forces from the eastern Donetsk region.
Major defence firms slipped, with Rheinmetall and
Hensoldt down 2.6% and 1.2%, respectively. On the flip
side, Ukraine-exposed miner Ferrexpo
The STOXX 600 has had a positive December so far, as optimism around U.S. interest rate cuts and progress on a Russia-Ukraine ceasefire lifted sentiment.
"Markets are expecting earnings growth and looser monetary policy, so many investors think this is a supportive market environment for European indices," said Roland Kaloyan, head of European equity strategy at Societe Generale.
On the macro front, the European Central Bank's monetary policy decision is due on Thursday, with markets widely expecting it to keep rates on hold.
Market sentiment shifted last week following unexpectedly hawkish comments from ECB policymaker Isabel Schnabel, who suggested a rate hike could be the next move, though it would not happen in the near term.
Decisions from Sweden's Riksbank, the UK's Bank of England and Norway's Norges Bank are also expected this week.
Delayed jobs and inflation data in the U.S. this week could also set the tone for global markets heading into 2026.
Among others, Argenx shares lost 4.4% after the Dutch biopharma company discontinued a phase 3 trial for its thyroid eye disease treatment.
French Drugmaker Sanofi fell 3.9% after expectations grew that the U.S. Food and Drug Administration would delay a decision on its multiple sclerosis drug, tolebrutinib.
Schneider Electric rose 2.5% after brokerages lifted the target price on the French electrical equipment maker.
(Reporting by Purvi Agarwal and Ragini Mathur in Bengaluru; Editing by Sherry Jacob-Phillips and Tasim Zahid)
