European Markets Soar Amid Political Unrest and Stock Upgrades

Europe's STOXX 600 index hit a near one-month high as bank shares surged, despite political instability in France. The CAC 40 index experienced volatility due to looming government collapse. Meanwhile, stocks like Hugo Boss and EasyJet rose after positive brokerage ratings. Market sentiment remained positive amid global trends.

Bank stocks propelled Europe's STOXX 600 to a near one-month high, even as investors monitored political instability in France. The CAC 40 index briefly experienced pressure, then rebounded, as the French government faced a potential collapse due to no-confidence motions against Prime Minister Michel Barnier.

Market sentiment was bolstered by global factors, including Wall Street's record rally. The CAC 40, however, has underperformed regional peers recently. Meanwhile, ASML gained 2.5% amid optimism over its financial guidance, while Hugo Boss and EasyJet shares surged following positive broker ratings.

Despite some companies' ratings downgrades, like Mercedes-Benz and Covivio, the overall market tone was optimistic. Investors also looked ahead to key economic data, including Euro-zone GDP and U.S. employment figures, influencing the week's market direction.

(With inputs from agencies.)