European markets closed higher on Monday as investors engaged in selective buying ahead of a series of major central bank meetings and a pivotal vote on Germany’s proposed spending reform. Sentiment was also buoyed by optimism around China’s economic stimulus measures and continued monitoring of the Russia-Ukraine conflict.
Germany is set to vote on a crucial spending plan Tuesday, aimed at exempting defense expenditure from debt limits and establishing a €500 billion infrastructure fund. The CDU/CSU bloc, led by Friedrich Merz, is expected to secure the necessary support for constitutional amendments to advance the proposal.
Investor focus also remains on upcoming monetary policy announcements from the Federal Reserve, Bank of England, and Bank of Japan this week.
China’s plans to boost wages and support equity and real estate markets added to the upbeat mood across European bourses.
The pan-European Stoxx 600 gained 0.79%. Germany’s DAX advanced 0.73%, France’s CAC 40 rose 0.57%, and the U.K.’s FTSE 100 added 0.56%. Switzerland’s SMI led with a 1.09% rise. Most other European markets, including Belgium, Denmark, Spain, and the Netherlands, also recorded moderate to strong gains.
In the U.K., Phoenix Group surged nearly 11% after reporting a 31% jump in adjusted operating profit and lifting its 2026 target. The insurer also announced a 2.6% dividend hike.
JD Sports Fashion, Entain, M&G, Fresnillo, and Kingfisher rose between 2–3%. Meanwhile, Tesco fell 4.4%, and Marks & Spencer slipped 4.1%.
German stocks such as Sartorius, SAP, Siemens Energy, and BMW posted solid gains. In France, BNP Paribas, Airbus, and AXA advanced, while luxury stocks like Kering and L’Oréal lagged.
AstraZeneca dipped 0.7% after announcing its acquisition of Belgian biotech firm EsoBiotec for up to $1 billion.
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