European stocks rose at the start of the trading week on Monday, supported by a decline in bond yields as investors assessed key inflation data. Siemens Energy's shares continued to rise amid ongoing discussions regarding project-related guarantees. The Stoxx 600 index closed up 0.4 percent after dropping more than four percent in the past two weeks. The drop in sovereign bond yields in the Eurozone supported the stocks.
Data showed a decrease in inflation in North Rhine-Westphalia, Germany's most populous state, in October, while inflation in Spain remained stable at an annual rate of 3.5 percent this month, the same level recorded last month. The German DAX index closed up 0.2 percent, although Infineon Technologies' shares plummeted 6.4 percent to the bottom of the Stoxx index after European investment bank Stifel cut its price target for the stock.
Investors are looking forward to comments from central banks in Japan, the United States, and Britain regarding monetary policy this week, while also monitoring inflation data in Europe after the European Central Bank held interest rates steady last week.
Healthcare sector stocks achieved the highest gains, rising 1.1 percent, boosted by a jump of over two percent in the shares of Novo Nordisk and Sanofi. Siemens Energy's stock topped the Stoxx 600 index after surging 12.7 percent following statements from the company's chairman that they do not require government funds while continuing discussions with Berlin regarding project guarantees.
Dassault's shares rose 2.3 percent after JPMorgan upgraded the valuation of the French software company, citing improvements in its licensing trajectory and revenues from major deals. However, ArcelorMittal's shares fell 3.9 percent after confirming discussions about nationalizing a coal mine owned by the company in Kazakhstan, where at least 45 people died in a fire earlier this week. HSBC's shares also declined 2.3 percent after the largest bank in Europe doubled its quarterly profits, but they fell short of expectations.
