European stocks steady as Nagarro rally offsets ceasefire caution

European equities were little changed on Monday as gains in technology shares offset wider market caution. The pan-European STOXX 600 stood near 636.13 points at 0709 GMT, while the technology index rose about 1.1% after suffering its sharpest weekly drop since mid-March.

Nagarro led the sector rally, jumping about 90% after India’s Persistent offered €81 a share to acquire the AI-focused digital engineering firm. The takeover proposal pushed up sentiment across other technology stocks that had been hit by concerns about elevated valuations in AI-related names.

Investors had turned cautious last week as higher energy prices and inflation risks increased the possibility of further interest-rate rises from central banks. Those worries contributed to market volatility and left the STOXX 600 roughly flat for the prior week. On Monday, most other sectors showed limited movement as traders weighed company-specific gains against broader uncertainty.

Geopolitical developments in the Middle East remained a market focus. The United States and Iran exchanged fire over the weekend before agreeing to halt hostilities and resume talks. Market participants described the ceasefire as fragile. Oil prices climbed about 0.6% to near $72 a barrel as traders evaluated potential effects on crude shipments through the Strait of Hormuz.

Several brokerages revised their views on European equities following the easing in geopolitics. JP Morgan raised its year-end target, citing resilient corporate earnings and signs of reduced geopolitical risk as reasons for a more positive outlook.

Attention is now on the European Central Bank’s annual conference in Sintra, where remarks from Federal Reserve Chair Kevin Warsh and ECB President Christine Lagarde are expected to influence expectations for future interest-rate policy. Traders will monitor those comments as they reassess the interplay of inflation, energy prices and geopolitical developments.