Stocks Rally: Europe's Gains Overcome Energy Dip

The European stock index ended higher, offsetting energy sector losses with gains in construction, media, and travel industries. Monetary policy shifts, tech earnings, and geopolitical factors will be crucial in the coming weeks. Despite Philips' downgrade, several companies enjoyed notable stock increases.

Europe's main stock index closed higher on Monday, buoyed by gains across construction, materials, media, travel, and leisure sectors, which outweighed losses in the energy sector caused by declining oil prices. The pan-European STOXX 600 finished the day 0.4% higher, regaining momentum after its first weekly decline in three.

Investors are keenly observing economic data, including the bloc's third-quarter GDP and October inflation figures, amid recent European Central Bank interest-rate cuts. Further interest-rate reductions are forecasted, reflecting concerns over economic growth, a loosening labor market, and slow wage growth.

Noteworthy market movements included a 17% slump for Philips due to weakened Chinese demand, while Melrose Industries and Sonova saw significant gains after positive corporate announcements. Upcoming U.S. tech earnings and the presidential election add to the diverse factors shaping market sentiments this week.

(With inputs from agencies.)