European shares rebound as markets ‘regain poise’ after volatility

European stock markets rebounded on Monday with trading starting on steadier footing following a tumultuous week.

UK and European stocks gained ground, while the US’s top indexes were climbing higher in early trading.

London’s FTSE 100 rose 170.16 points, or 2.14%, to close at 8,134.34, recovering some of the losses made over recent days.

Nevertheless, it remains considerably lower than it was before Donald Trump’s tariff announcement earlier this month, which sparked a heavy sell-off in stock markets around the world.

Europe’s biggest indexes also leapt higher after dipping at the end of last week, following a sharp improvement on Thursday.

Germany’s Dax index jumped 2.85%, while France’s Cac 40 ended the day 2.37% higher.

Top US indexes opened higher on Monday as a greater sense of calm swept the financial markets. The S&P 500 and Dow Jones were both up about 0.2% by the time European markets closed.

Tom Stevenson, investment director for Fidelity International, said: “After a rocky week, as investors struggled to price in changing trade and tariff policy, markets seem to have regained their poise.

“Shares pushed higher all around the world on Monday after scoring a technical bear market – a fall of more than 20% from the latest peak – at last week’s low point.

“The pendulum swing of US policy was in full evidence last week.

“Shares soared on Wednesday after a 90-day postponement of swingeing trade tariffs suggested that Donald Trump remains focused on the market reaction to his radical bid to reshape the global trade landscape.”

The pound was also strengthening against key currencies. Sterling was rising about 0.75% against the US dollar, at 1.318, and was up 0.4% against the euro, at 1.16.

In company news, John Wood Group said it had received a fresh takeover bid from Dubai-based suitor Sidara, almost a year after talks collapsed.

The new offer would value the company at around £242 million – significantly lower than the previous £1.56 billion takeover approach.

Wood said it has continued to assess other potential refinancing options alongside holding talks with Sidara, but that its board members think the potential takeover offer is the “better option”. Shares in the group closed 4.4% higher.

Elsewhere, shares in Ashmore dropped after the fund manager reported its total assets under management dipped by around 5% over the latest quarter, compared with the previous three-month period.

The company nonetheless said emerging markets had shown “resilience” in the face of recent volatility, and that it benefited from higher subscriptions activity over the quarter. Shares in Ashmore closed 6.4% lower.

The biggest risers on the FTSE 100 were Melrose Industries, up 22.4p to 427.4p, St James’s Place, up 40.6p to 864p, Standard Chartered, up 46.4p to 989.4p, Barclays, up 12.45p to 270.4p, and Intermediate Capital, up 77p to 1,750p.

The only stock to fall on the FTSE 100 was London Stock Exchange Group, down 90p to 11,075.