European Stocks Rise as Julius Baer Gains on End to Swiss Probe
(Bloomberg) — European stocks rose as oil prices fell and investors pared bets on interest-rate hikes from the European Central Bank, while Julius Baer Group Ltd. rallied after Swiss regulatory action against the bank ended.
The Stoxx Europe 600 index was 0.6% higher as of 12:36 p.m. in London. Chip stocks led the advance, with ASML Holding NV rising 3.5%. Oil and gas companies were the biggest laggards, pulling back from record highs as Brent crude oil fell below $105 a barrel after flows resumed through a key pipeline in Saudi Arabia.
In other individual stock moves, Julius Baer jumped 9%. The bank said it applied for permission to resume share buybacks after Swiss regulator Finma concluded its enforcement procedure, marking the end of a painful restructuring. Chocoladefabriken Lindt & Spruengli AG fell 8% after the Swiss-based chocolatier cut its sales-growth guidance for a second time this year.
Meanwhile, traders have pulled back from bets on an October rate hike from the ECB after seemingly dovish comments from President Christine Lagarde. The market is now pricing a 34% chance of an increase.
European stocks are entering the latest earnings season sitting just below all time highs, but in need of a strong catalyst to overcome persistent geopolitical risks. Brent crude has traded above $100 a barrel for three weeks running and an end to war in the Middle East seems distant, with Iranian officials pessimistic about the chances of a deal before US midterm elections.
“The market is scrambling for some positive news,” said Michael Field, chief equity market strategist for EMEA at Morningstar. “There’s so many negatives building in the background so I think unless we get a series of positive catalysts, we’re not gonna get back on track with that run.”
Here’s what strategists are saying about markets:
Goldman Sachs strategists remain neutral over three months but modestly pro-risk over 12 months, arguing that easing rates pressure would open up “the clearest path to equity upside.” The decline in equity valuations reflects pressure from the surge in rates over the past few months, while poor market breadth is a contrarian indicator that generally signals oversold conditions, according to HSBC strategists. ©2026 Bloomberg L.P.
