European markets rebound as oil prices dip and China's economy brightens
European markets saw a strong rebound on Monday, with key indices climbing after weeks of uncertainty. The recovery came as oil prices eased and economic data from China pointed to a brighter outlook. Meanwhile, UniCredit's planned takeover bid for Commerzbank pushed the German bank's shares sharply higher.
The DAX rose by 0.5%, closing at 23,564 points, while the Euro Stoxx 50 gained 0.4% to reach 5,739 points. The upturn followed a positive start on Wall Street and encouraging figures from China, where retail sales and fixed-asset investments surged. These numbers suggested a recovery in the world's second-largest economy.
Oil prices also retreated, with Brent crude dropping from $106.50 to $102.60 per barrel. The decline helped ease market tensions, contributing to the euro's recovery to just under $1.15. Despite this, geopolitical risks lingered after the U.S. warned NATO allies about potential disruptions in the Strait of Hormuz.
Commerzbank's shares surged by 8.6% to €32.14 after UniCredit announced plans for a formal takeover bid in early May 2026. The proposed offer of around €30.8 per share—a 4% premium as of March 13, 2026—was well received by analysts. UniCredit's intention to increase the premium further boosted investor confidence in the deal. Other companies, including Zalando and Bayer, also saw gains following positive analyst assessments.
The market rebound reflects improved sentiment, driven by lower oil prices and China's economic rebound. Commerzbank's share jump highlights investor optimism around UniCredit's takeover plans. However, ongoing geopolitical tensions continue to pose risks to long-term stability.
