Opening Bell: EU Stocks Kick Off Week with Modest Gains on Ukraine Diplomacy Hopes

Opening Bell: EU Stocks Kick Off Week with Modest Gains on Ukraine Diplomacy Hopes

European equities opened the week on a cautiously upbeat note, with the STOXX Europe 600 inching up about 0.2% in early trade. The rally reflects investor optimism around today’s high-profile meeting in Washington between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy, as markets seek signs of progress toward a ceasefire and a path to stabilize energy and commodity flows in 2026.

London’s FTSE 100 led gains among the big four, climbing 0.23% just after 09:30 CEST, while Germany’s DAX added 0.16%, France’s CAC 40 rose 0.24%, and Italy’s FTSE MIB was 0.20% higher. Financials and auto manufacturers have been among the best performers so far, whereas energy names have lagged amid a slight pullback in oil prices overnight.

Overnight in Asia-Pacific, equity markets finished broadly higher as U.S. Treasury yields dipped on renewed hopes for interest-rate cuts later this year. Tokyo’s Nikkei 225 jumped over 1%, and Australia’s ASX 200 rallied nearly 0.8%, setting a risk-on tone that carried into European futures trade.

Investors are also digesting updated data on Spanish and EU trade balances, with preliminary figures due later this morning. Any surprises in exports or imports could tilt the session, especially for exporters in Germany and the Netherlands, where the trade surplus remains a key driver of growth expectations.

With Asia and U.S. markets closed for early holidays this week, Europe will have an outsized influence on global sentiment. Traders say today’s moves are likely a precursor to the European Central Bank’s rate decision next week, and any shift in rhetoric there could amplify today’s modest gains into a fuller rally—or trigger a bout of profit-taking.