European Stocks Rebound as Oil Prices Dip Below $100

European shares rebounded last week as oil prices dropped below $100 per barrel for the first time in months, breaking a three-week losing streak. The pan-European STOXX 600 index rose 0.4% on Friday and added to its 0.5% weekly gain. This was the index's largest weekly increase since early August.

The decline in oil prices, which had been above $100 per barrel for several weeks, helped boost stocks sensitive to energy costs. Airline companies like Ryanair and Lufthansa gained over 2%, while travel and leisure stocks rose by 0.8%. The biggest gainers were heavyweight banks, which increased by 1.3%.

However, despite the upward trend, investors remained cautious due to ongoing tensions in the Middle East and rising bond yields. Energy shares fell 1.3%, making them the largest sectoral losers. German consumer sentiment also weakened more sharply than expected in October, as households' income outlook was soured by rising energy prices.