STOXX 600 Rises 0.45% on Nov 2, 2026 as Oil Slides on Iran Talks

Key takeaways

• The STOXX Europe 600 rose 0.45% to 649.65 at 16:30 UTC on Monday, November 2, 2026, according to Yahoo Finance data, after trading between 644.60 and 650.22.
• January Brent crude futures fell 7.10% to $105.38 a barrel at 16:30 UTC, Yahoo Finance data show, as reports of renewed US-Iran diplomacy eased supply fears.
• Southern and French markets led: Spain's IBEX 35 gained 1.71%, the CAC 40 0.95% and Italy's FTSE MIB 0.96%, while the DAX added 0.64% and the FTSE 100 0.35%.
• Alstom fell about 27% in morning trade after cutting its annual margin forecast, Reuters reported, while healthcare shares eased after their best month since 1987.
• Bond yields dropped with oil: the UK 10-year gilt yield fell 0.101 percentage point to 5.191% and the German 10-year Bund yield 0.025 point to 3.294%, Investing.com data show.

Session recap

European shares started the week cautiously but closed higher on Monday as a slide in oil prices lifted travel stocks, rate-sensitive markets and government bonds, offsetting a slump in Alstom and profit-taking in healthcare. For the wider picture, see Asian and global market closes and our Europe brief for October 30, when chip stocks pulled the region lower.

Notes: index levels are the last quotes at the end of continuous trading; official values after the closing auctions can differ slightly. Investing.com's daily table showed the STOXX 600 at 650.14 (+0.52%) and the FTSE MIB at 50,026.50 (+1.06%) for November 2, the same direction as Yahoo Finance. Changes are calculated from Friday's closes in the same Yahoo Finance series (STOXX 600 646.75, Euro Stoxx 50 6,131.31, DAX 25,818.21, FTSE 100 10,729.80, CAC 40 7,969.42, FTSE MIB 49,500.97, IBEX 35 18,652.90) and Yahoo's previous closes for EUR/USD (1.1166) and GBP/USD (1.3389). Yield changes compare Investing.com's November 2 readings (3.2939% and 5.1908%) with Friday's (3.3185% and 5.2917%); Trading Economics also showed the Bund near 3.30% and the gilt near 5.19%. Brent is Yahoo Finance's front-month contract (BZ=F), whose previous settlement of $113.43 matches the January contract; Monday's settlement, at 19:30 UTC, was not available at the time of writing.

What drove it

Oil slides on US-Iran diplomacy reports

The biggest market move of the day was in crude. Brent fell from $113.43 to $105.38 by 16:30 UTC after several reports pointed to more room for diplomacy in what CNBC described as the eight-month-long Middle East conflict. The National, citing Axios, reported that President Donald Trump told Israeli Prime Minister Benjamin Netanyahu he wanted to give diplomacy more time and would weigh renewed strikes only after Tuesday's US midterm elections. Oilprice.com reported, citing Reuters, that a draft proposal on a possible end to the war was being circulated, although its contents were not described. CNBC said reports indicated Iran's supreme leader had given the government some authority to hold peace talks; Bullquill has not independently verified that report.

Analysts cautioned that nothing is settled. ING commodities analysts wrote that "it remains to be seen whether this will lead to anything," Oilprice.com reported. Shipping attacks also continued: The National said two vessels were struck over the weekend, one in the Strait of Hormuz and one off Saudi Arabia's Gulf coast, according to reports to UK Maritime Trade Operations.

Travel up, energy and healthcare down

Lower fuel costs made travel and leisure the best STOXX 600 sector, up 1.7% by 09:20 GMT, Reuters reported in a story published on Euronext's news site. Ryanair rose 2.1% after announcing cost cuts following a 6% fall in net profit. Energy shares fell with crude. Healthcare eased 0.9% and was the largest drag in the morning after a 14% gain in October, its steepest monthly rise since February 1987, according to the same Reuters report. Chip stocks recovered some of last week's losses, with Aixtron up 2.4% and Infineon up 1.3%.

Alstom slump after profit warning

French train maker Alstom fell about 27% to its lowest since March 2024 after cutting its annual margin forecast, Reuters reported. The company blamed execution problems on its Coradia Max regional train platform in Germany and now expects negative free cash flow for the year. Bavarian Nordic gained 3.2% after winning a four-year UK government contract for its mpox and smallpox vaccine and announcing buyback plans.

Factories still growing, bonds rally

The final euro area manufacturing PMI for October came in at 52.7, above the flash estimate of 52.4 but down from 52.9 in September, Trading Economics reported. A reading above 50 signals expansion. The survey showed output growth at a four-month low and faster increases in input costs. Government bonds rallied as cheaper oil eased inflation concerns: Trading Economics said the Bund yield fell to its lowest since late August, while UK gilts were also supported by Chancellor John Healey's first budget, which stayed within the government's borrowing rules.

Political & policy watch

United States and Iran

Secretary of State Marco Rubio said at the weekend that no decision had been made on renewed strikes and that President Trump preferred a diplomatic resolution, The National reported. Iranian negotiators held talks with Qatari mediators and left Qatar on Sunday, according to Oilprice.com. Oilprice.com reported, citing Reuters, that Iran's foreign ministry spokesman Esmaeil Baghaei said "our demands have been articulated very clearly and transparently." For background on why crude matters for prices, see our explainer on how oil price shocks hit inflation and rates.

Bank of England and fiscal risk

The Bank of England is widely expected to raise interest rates on Thursday, November 5, which would be its first hike since 2023, according to Trading Economics. In the euro area, the ECB held rates last Thursday, and President Christine Lagarde said a hike had been discussed, Trading Economics reported. Concerns over public finances persist: Fitch revised France's outlook to negative in an unscheduled review last week, the same source said.

What to watch next

• November 2, 19:30 UTC: ICE settlement of January Brent futures.
• November 3: US midterm elections; Trump may weigh any renewed Iran strikes after the vote, The National reported.
• November 5: Bank of England rate decision, with a hike widely expected, according to Trading Economics.
• This week: any follow-up meeting on the US-Iran draft proposal; ING said the market "may have to hold its breath until the end of the week," Oilprice.com reported. See our oil weekly brief for last week's context.
• Ongoing: shipping incidents in the Strait of Hormuz and the remainder of the European third-quarter earnings season.

Risk checklist for readers

• Headline-driven oil. Brent moved more than 7% in one session on diplomatic reports that are not confirmed agreements, so energy prices can reverse sharply.
• Unconfirmed reports. Stories based on unnamed officials or single outlets can change; check official statements from governments involved.
• Scheduled central bank risk. A Bank of England decision on November 5 can move gilts, sterling and the FTSE 100 within minutes.
• Single-stock shocks. Alstom's fall shows how a guidance cut can erase a large share of a company's value in one day, regardless of the index trend.
• Currency translation. Investors outside Europe, including in ASEAN markets, see returns shaped by euro and sterling moves as well as share prices; lower oil also matters for energy-importing economies in Asia.
• Pre-auction quotes. Levels published at 16:30 UTC can differ from official closes after the auction; STOXX and the exchanges publish reference values.

This article is for information only and is not investment advice.