Europe midday: Stocks rebound after five-day losing streak
By Benjamin Chiou
Date: Monday 16 Jun 2025
(Sharecast News) - Ongoing fighting in the Middle East wasn't enough to dampen European stocks on Monday, as investors stepped in to snap up bargains after markets hit a one-month low the previous session.
"European shares were surprisingly resilient against a backdrop of uncertainty," said Russ Mould, investment director at AJ Bell. However, he warned: "The Middle East conflict remains a fluid situation and there is the potential for markets to still experience sudden jolts if the tension escalates further."
The European benchmark Stoxx 600 index was up 0.3% at 546.68 just after the midday mark, snapping a five-day losing streak.
However, upside was limited, with solid gains in Madrid and Milan (both up 0.9%) and Milan (+0.6%) tempered by more moderate performances in London and Frankfurt (+0.4%) and losses in Zurich (-0.2%).
Nevertheless, the FTSE 100 was pushing further into record territory, on track to finish the session above the 8,900 level for the first time, following a 16% surge since hitting 52-week low in early April.
The Stoxx 600 fell 1.6% last week to settle at 544.94 - its lowest close since 14 May - as investors scaled back risk appetite after Israel sent airstrikes to nuclear bases in Iran, causing oil prices to surge. Fighting continued over the weekend, with both sides exchanging strikes for four straight days.
However, according to Stephen Innes, managing partner at SPI Asset Management, "markets seemed to be moving towards relative calm after an initial risk-off move on Friday, with investors discounting a limited regional trading of blows rather than the start of WW3".
Brent was down 0.6% at $73.81 a barrel, after jumping to more than $78 at once stage on Friday - its highest since January.
Closer to home, the head of Germany's Bundesbank, Joachim Nagel, pushed the European Central Bank not to rush into further interest-rate cuts following another reduction this month - its eighth such move this month since June 2024. "We should continue to make decisions on a meeting-by-meeting basis depending on the data and not rush into anything," Nagel said in a speech.
Market movers
Shares in Kering surged 10% on the back of speculation that Renault boss Luca de Meo is set to join the French luxury group as its new chief executive. While the appointment has not been confirmed, Renault announced in a statement that De Meo would be leaving the company after five years to "pursue new challenges outside the automotive sector", causing shares in the automaker to drop 7%.
FTSE 100-listed gambling and sports betting group Entain jumped 11% after guidance for its US operations was upgraded folloinw a stronger-than-expected second quarter from BetMGM. Swedish peer Evolution Gaming was also up 7%, while Playtech gained 4%.
Meanwhile, M&A activity was moving mid-cap stocks in London: Metro Bank was up 13% following reports over the weekend that it has been approached by private equity firm Pollen Street Capital about a possible takeover; while Spectris rallied 6% after it rebuffed a takeover approach from US private equity giant KKR, fuelling hopes of a potential bidding war with buyout firm Advent International.
Swiss pharma giant Roche was lower on the news it had paused the commercial and clinical use of Duchenne muscular dystrophy treatment Elevidys after it was linked to two fatal cases of acute liver failure.
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