FX.co ★ European Stocks Tumble

European stocks started the week with steep declines, as both the STOXX 50 and STOXX 600 slid more than 2%, hitting their lowest levels since November 2025. The selloff was largely triggered by another sharp rise in energy prices, with Brent crude climbing above $100 per barrel and reigniting worries about renewed inflationary pressures. In response, traders have increased their expectations for European Central Bank tightening, now pricing in two 25 bps rate hikes this year, up from just one as of Friday. Losses were broad-based across all sectors, with industrials and technology leading the downturn. ASML dropped 5.1% amid mounting concerns about softening demand, while Roche fell 4.2% after its breast cancer drug combination failed to meet the primary endpoint in a late-stage clinical trial.