Europe's STOXX 600 gains as tech rallies, oil retreat eases nerves

European shares climbed on Monday, led by technology stocks, while a fourth consecutive session of declines in oil prices soothed nerves and boosted risk sentiment.

The pan-European STOXX 600 was up 0.56% at 638.98 points by 0710 GMT, after dipping 0.6% last week. Most regional bourses also traded higher.

Energy stocks slipped 0.62% as oil eased following reports that more supply was leaving the Gulf than previously expected, despite the ongoing conflict in the Middle East.

On the other hand, travel stocks rose 0.86% as lower oil prices lifted airline shares, while technology stocks led sectoral gains, advancing roughly 2% on strength in chip-linked stocks including Soitec and Aixtron.

Germany’s DAX rose 0.76%, with investors also digesting the results of state elections in northeastern Germany, where projections showed the far-right Alternative for Germany (AfD) emerging as the largest party.

Market participants were also assessing data from Sweden showing that long-term inflation expectations among financial and business groups eased in September.

Attention is now turning to a meeting later this week between US President Donald Trump and Chinese counterpart Xi Jinping for clues on trade relations and the global economic outlook.

Among individual stocks, AstraZeneca slipped 0.32%, despite the drugmaker saying its cancer treatment Enhertu had been recommended for EU approval for use in early breast cancer.

Sweden’s Nordnet gained 4.6% after the digital bank and online brokerage platform announced a buyback programme. Shares of biotech firm Ipsen fell more than 6%.