The key facts

  • Stoxx 600 rose 0.42% to 649.44, closing near a two-month high
  • Brent fell more than 7% amid a third day of talks between Iranian and Qatari officials
  • Travel and leisure stocks gained about 3% — the most since June; energy stocks fell 2.3%

Gains amid diplomacy and cheaper oil

European stock indices closed higher on Monday, November 2, 2026, as oil prices fell amid diplomatic efforts to end the war in Iran, Anadolu reports. The pan-European Stoxx 600 index added 2.69 points, or 0.42%, to 649.44 — near a two-month high. The best performer among major markets was Spain's IBEX 35 (+1.63% to 18,957.80); France's CAC 40 rose 0.98% to 8,047.69, Italy's FTSE MIB gained 0.90% to 49,947.94, Germany's DAX added 0.63% to 25,981.09, and the UK's FTSE 100 rose 0.29% to 10,761.33.

Oil and sectors: airlines versus energy

Brent fell more than 7% after Iranian and Qatari officials held talks for a third consecutive day. The decline partially reverses October's rally, when Brent hit a six-month high on fears of escalation ahead of the US midterm elections on Tuesday. Cheaper fuel lifted travel and leisure stocks by about 3% — the biggest daily gain since June — as expectations of airlines' kerosene costs declined. The energy sector, by contrast, lost 2.3%.

Ryanair and Alstom: contrasting corporate news

Irish low-cost carrier Ryanair rose 5.2% despite reporting a 15% year-on-year drop in first-half net profit to €2.15 billion ($2.4 billion). The company said the price of jet fuel outside hedging contracts had doubled, average fares fell 4%, and passenger traffic grew 6% to 125.8 million. At the opposite pole was French trainmaker Alstom, which plunged 26% after cutting its full-year guidance: due to technical problems and additional testing requirements for the Coradia Max trains in Germany, the company now expects organic sales growth of 2–4% instead of the previous roughly 5%, along with negative free cash flow.

Eurozone business activity

According to S&P Global, the eurozone manufacturing PMI slipped slightly in October to 52.7 from 52.9 in September, remaining above the 50 mark that separates growth from contraction. New export orders grew at their fastest pace in more than four and a half years, however rising energy costs and supply disruptions pushed input cost inflation to a five-month high. Of the eight eurozone economies surveyed, only France and Italy recorded a contraction in manufacturing activity.