European Stocks Soar as Oil Prices Plummet

European stocks kicked off the week on a high note, with the STOXX 600 rising 0.8% as falling oil prices alleviated inflation concerns and lured investors back to riskier assets.

The Brent crude price continued its downward trend for the fourth consecutive session, marking its longest daily losing streak since June, according to Reuters. This decline in energy costs is particularly significant for Europe, which imports a substantial amount of energy, potentially reducing consumer prices as investors digest the European Central Bank's interest-rate hike earlier this month.

The impact of cheaper oil was evident in sector movements, with technology shares increasing around 2% due to chip-linked names like Soitec and Aixtron. Meanwhile, bank stocks gained 1.6%, led by Societe Generale and Italy's Banco BPM, despite energy shares slipping.

Politics and policy expectations added background noise, as Germany's DAX climbed in response to state-election projections, while Swedish survey data indicated slightly lower long-term inflation expectations. The upcoming Trump-Xi meeting later this week is also generating interest among investors, who are looking for clues on trade policy and the global growth outlook.