31.03.202608:14:25UTC+00European Stocks Rebound, Still Set for Big Monthly Drop

European equities rebounded from a weak open on Tuesday, with both the STOXX 50 and STOXX 600 advancing 0.7%. Investors drew some reassurance from fresh indications that the conflict with Iran may be approaching a resolution, despite continued hostilities. According to the Wall Street Journal, U.S. President Trump told aides he would be prepared to suspend U.S. operations against Iran even if the Strait of Hormuz remains closed, arguing that efforts to force Tehran to reopen the key oil transit route could unnecessarily prolong the confrontation.

Financials and industrials led sector gains, while energy stocks traded lower. Among notable movers, Novartis rose 1.4%, Nestlé 1.1%, Siemens 1.0% and Banco Santander 1.6%. In contrast, NXP Semiconductors fell 2.2%, STMicroelectronics declined 2.4% and TotalEnergies slipped 0.3%.

For March as a whole, the STOXX 50 has dropped nearly 10%, and the STOXX 600 is down more than 8%, marking their steepest monthly losses since 2020.