Stocks in Europe began the week with sharp losses, as both the STOXX 50 and the STOXX 600 fell more than 2%, dropping to their lowest levels since November 2025. The decline was driven largely by another surge in energy markets, with oil prices climbing above $100 per barrel and reigniting concerns about rising inflation. Traders are increasing their bets on ECB interest-rate hikes, now pricing in two 25bps increases this year, compared with expectations of just one as of Friday. All sectors traded in negative territory, with industrials and technology leading the declines. ASML fell 5.1% amid concerns over weakening demand, while Roche dropped 4.2% after the company’s breast cancer drug combination failed to meet its primary endpoint in a late-stage trial.
