European stocks experienced gains on Monday, driven primarily by UK-listed healthcare and technology stocks. The pan-European STOXX 600 index rose by 0.3% to 556.3 points. However, market sentiment remained cautious due to concerns surrounding a possible U.S. government shutdown, which could potentially delay the release of critical economic data.
Among the top performers were UK-listed healthcare stocks, with GSK notably increasing by 2.9%. GSK, a global biopharma company, focuses on developing innovative medicines and vaccines. AstraZeneca also saw gains, adding nearly 1%. AstraZeneca is a science-led biopharmaceutical company that discovers, develops, and commercialises prescription medicines.
European miners also contributed to the positive momentum, climbing 1.2% as metal prices rose, with gold reaching a record high. Technology stocks gained 0.9%, with chipmakers ASMI, ASML, and BE Semiconductor each increasing by over 1%. Conversely, euro zone banks faced headwinds, shedding 0.7%, with Germany’s Commerzbank and Italy’s BPER Banca experiencing losses.
Market participants are closely monitoring developments in the U.S., where President Trump is scheduled to meet with congressional leaders to discuss extending government funding. A shutdown could impact financial markets by limiting the operations of financial regulators and delaying the publication of key economic data, including the upcoming September jobs report. Earlier in the month, European stocks cheered the Fed’s first interest rate cut of 2025, though they still remain more than 1% away from their all-time highs.
