European stock markets traded mostly higher on Monday, supported by a decline in oil prices as investors prepared for interest rate decisions from major central banks and quarterly earnings announcements from leading technology companies.
The FTSE 100 gained 0.5%, while France’s CAC 40 and Germany’s DAX each advanced 0.9%.
Market attention remained focused on developments in the Middle East, the outlook for monetary policy and the financial performance of companies investing heavily in artificial intelligence infrastructure.
Oil Prices Fall Following Middle East Diplomatic Developments
Oil prices declined by nearly 2% after Saudi Arabia partially resumed operations at King Khalid International Airport in Riyadh and a Qatari delegation arrived in Tehran for diplomatic discussions.
The visit was part of renewed efforts to reduce regional tensions, undertaken in coordination with the United States.
The developments followed disruptions associated with the continuing conflict in the Middle East, which has affected energy markets and raised concerns about regional oil supplies.
The decline in crude prices provided some relief to equity markets, where investors have been assessing the potential effects of higher energy costs on inflation, corporate expenses and consumer demand.
Further developments in diplomatic negotiations and regional security remain relevant to the outlook for oil prices.
Fed, ECB and Bank of Japan Prepare Interest Rate Announcements
Investors are also awaiting monetary policy decisions from the US Federal Reserve, the European Central Bank and the Bank of Japan.
The three institutions are scheduled to announce their decisions between 28 and 30 October.
The meetings come as central banks assess inflation, economic activity and the implications of energy price movements for monetary policy.
Investors will examine the accompanying statements and comments from policymakers for indications of how interest rates may develop over the coming months.
The announcements could influence government bond yields, currency markets and equity valuations.
Technology Earnings to Provide Further Information on AI Spending
Quarterly results from several major US technology companies are also scheduled for this week.
Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Intel (NASDAQ:INTC) and SanDisk (NASDAQ:SNDK) are among the companies expected to report earnings.
The announcements come amid investor scrutiny of spending on artificial intelligence infrastructure and uncertainty about the financial returns from those investments.
Market participants will assess revenue, profitability, capital expenditure and management guidance for information about demand for AI-related products and services.
The results could also provide further indications of how technology companies are financing infrastructure expansion and managing associated costs.
Bolloré and Man Group Shares Rise, Sika Declines
Individual European companies also recorded share price movements following corporate announcements.
French conglomerate Bolloré advanced after reporting its group revenue figures for the third quarter and the first nine months of 2026.
The company’s revenue performance was among the factors drawing investor attention during Monday’s session.
In London, Man Group (LSE:EMG) shares rose following the announcement of an expanded strategic partnership with Japan’s Meiji Yasuda Life Insurance.
The agreement extends the relationship between the UK investment management company and the Japanese insurer.
Meanwhile, shares in Swiss speciality chemicals company Sika (TG:SIKA) declined after the company agreed to acquire Duproof, a Dubai-based manufacturer of waterproofing membranes.
The acquisition represents an expansion of Sika’s activities in construction-related materials.
European Market Outlook
European equities began the week with gains across several major indices as oil prices eased and investors awaited further economic and corporate developments.
Central bank announcements between 28 and 30 October will provide information about the direction of monetary policy, while technology earnings will offer additional evidence about corporate spending and returns associated with artificial intelligence.
Developments in the Middle East and company-specific announcements will remain additional factors for European markets.
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