European stocks set to start the week higher, following global market positivity

LONDON — European stocks started the new trading week on a positive note, following their global counterparts higher as hopes resurface for a Fed rate cut in December.

The pan-European Stoxx 600 was up 0.5% by 8:35 a.m. in London (3:35 a.m. ET), with most major bourses and sectors in positive territory.

Bayer AG advanced 11% to lead Monday’s gainers after the German pharmaceutical and biotech company reported positive efficacy data from the Phase III study of its blood thinner Asundexian, a stroke prevention drug.

Meanwhile, AstraZeneca added almost 0.2% after the London-listed drugmaker said on Friday it will invest $2 billion in its biologic manufacturing plant in Frederick, Maryland as part of a wider $50 billion expansion of its U.S. presence.

Europe’s defense stocks retreated on Monday amid ongoing talks between the U.S. and Ukraine to craft a peace plan, after an initial 28-point proposal was seen as largely pro-Russian and demanding significant concessions from Kyiv.

Rheinmettal was down 2.7% on Monday morning, as Renk fell 2.9%, Hensoldt lost 2.1% and Saab dropped 1.6%  Overall, the Stoxx 600 Aerospace and Defense Index was about 0.8% lower in morning trade.

The U.S. said Sunday that there had been progress in talks at the weekend, which were attended by U.S. Secretary of State Marco Rubio, but that no agreement was reached on security guarantees for Ukraine.

Elsewhere, shares in Anglo American fell 0.2% on Monday after Australian multinational miner BHP dropped plans for a last-ditch takeover bid for its British rival.

Asia-Pacific markets and U.S. stock futures climbed in overnight trading Sunday as the market sought to build on a strong rebound that started on Friday, after the head of the New York Federal Reserve left the door open to a December interest rate cut.

The Fed’s next meeting will take place on Dec. 9-10 and markets are currently pricing in a 69.3% chance of a quarter-percentage-point cut, according to the CME FedWatch tool.

Global markets have had a tumultuous few weeks as investors questioned the sky-high valuations of artificial intelligence-linked tech names that have powered much of 2025′s market gains.

There are no major data or earnings releases in Europe on Monday but investors in the U.K. are gearing up for the Autumn Budget on Wednesday, with speculation mounting over the depth and breadth of tax hikes that British Finance Minister Rachel Reeves could unveil as she tries to balance the budget.