European shares edged higher on Monday as global markets steadied after last week’s sharp selloff, with easing concerns over artificial intelligence disruption, strong merger activity, and a notable improvement in euro zone investor confidence supporting risk appetite.
The pan-European STOXX 600 climbed about 0.3%, extending a rebound that began late last week after heavy losses linked to worries that AI could undermine traditional software business models. While uncertainty around the technology sector has not fully disappeared, investors appear more willing to selectively add risk.
AI worries cool, tech rebounds
European technology stocks led gains, rising around 0.7%. Shares in STMicroelectronics jumped nearly 5% after the company said it was expanding its cooperation with Amazon Web Services on compute infrastructure. The move helped reassure investors that established tech players can still benefit from the AI investment cycle rather than be displaced by it.
Market analysts described the move as rotation rather than outright optimism. There was little sign of euphoria, but the tone suggested that some of the most acute AI related fears are fading for now.
InPost surges on $9.2bn deal
Corporate dealmaking was a major driver of individual stock moves. Polish parcel locker group InPost surged more than 13% after a consortium led by Advent and FedEx agreed to buy the company in a deal valued at roughly $9.2 billion. The transaction stood out as one of the largest European buyouts this year and reinforced the view that private equity remains active despite volatile markets.
Not all M&A news was positive. NatWest shares slid after reports that the UK lender is nearing a £2.5 billion takeover of wealth manager Evelyn Partners, raising questions about pricing and strategic fit.
Pharma and banks add support
In the pharmaceutical sector, Novo Nordisk shares jumped over 8% after US-based Hims & Hers said it would stop offering a low-cost GLP-1 pill following warnings from regulators. The move eased competitive pressure in the weight loss drug market and also lifted shares in peer Zealand Pharma.
Banks were another bright spot. UniCredit rose more than 5% after Italy’s second-largest lender said it is targeting a profit of €11 billion this year, helping push eurozone bank stocks higher. Italy’s benchmark index outperformed other major European markets on the day.
Euro zone investor morale jumps
Adding to the positive tone, a key survey showed eurozone investor confidence rose sharply in February. The Sentix index climbed to 4.2 from -1.8 in January, its third straight monthly gain and the highest reading since July 2025. Both expectations and assessments of the current situation improved, with Sentix saying the eurozone recession appears to be ending.
Germany played a key role in the improvement, with sentiment there reaching its best level in months, fueling hopes that the region’s largest economy may be emerging from its downturn.
The bigger picture
Together, rising investor morale, selective tech rebounds, and renewed deal activity helped European stocks regain footing after a turbulent period. While AI related uncertainty and global volatility remain in the background, Monday’s moves suggest investors are becoming more comfortable rotating within markets rather than exiting risk altogether.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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