European Stocks Rebound Amidst Economic Uncertainty

European stock markets experienced a significant rebound, with the STOXX 600 index rising 1.1% after major declines. Banks led the gains, while Reckitt and Maersk also rose. However, uncertainties persisted due to upcoming U.S. elections and ECB's potential rate cuts influencing European economic prospects.

On Friday, European stocks marked a notable recovery as the main index, STOXX 600, climbed 1.1%, led by bank performances amidst mounting economic data and corporate earnings assessments. The index had been in a downward trend, losing nearly 3% over three days but managed to close the week with a slight decline.

The banking sector emerged as the top performer, driven by earnings momentum, while food and beverages lagged behind. In addition, financial services and technology sectors were key areas attracting investor focus. Despite the bullish market, caution remained ahead of the tightly contested U.S. presidential election next week.

Reckitt Benckiser saw a significant surge in shares after being cleared in a legal case, while Maersk and Technip Energies also posted gains. Conversely, Fugro experienced a sharp decline due to unexpected revenue drops in the U.S. and Middle East. Meanwhile, Swiss inflation figures supported prospects for further rate cuts by the Swiss National Bank.

(With inputs from agencies.)