Mucahithan Avcioglu
02 February 2026•Update: 02 February 2026
ISTANBUL
European stocks closed higher on the first trading day of the week, as investors expect an economic recovery later this year despite geopolitical uncertainties.
The pan-European Stoxx 600 index rose 1.03%, or 6.31 points, to close at 617.31.
Germany's DAX 40 index was up 1% to end at 24,784.92 points, while the UK's FTSE 100 climbed 1.15% to 10,341.56.
France's CAC 40 rose 0.67% to 8,181.17, and Spain's IBEX 35 gained 1.31% to end the day at 18,115.2 points.
Italy's FTSE MIB index fell 1.05% to close at 46,005.21 points.
Investors focused on the uncertainties stemming from the partial government shutdown in the US and expectations that Kevin Warsh, President Donald Trump's nominee for Federal Reserve chair, will avoid aggressive interest rate cuts.
In the European markets, this week's focus will be on the interest rate decisions of the European Central Bank and the Bank of England, with both banks expected to keep their policy rates unchanged.
According to data released Monday, retail sales in Germany rose 0.1% in December compared to the previous month, rebounding from the 0.5% decline in the previous month.
In the UK, the manufacturing purchasing managers index (PMI) rose to 51.8 points in January, its highest level in 17 months.
In the Eurozone, manufacturing PMI rose 0.7 points in January to 49.5.
The euro and dollar exchange rate was trading at 1.18 as of 1745GMT, down 0.4%.
