European equities started the week on the front foot, tracking gains in Asia and stabilizing after Friday’s banking-led slide in global risk assets.

• Germany’s DAX +1.0%
• France’s CAC 40 +0.5%
• U.K.’s FTSE 100 +0.4%

The bounce follows a late-week rebound in U.S. regional banks that helped investors look past lingering credit worries.

Tokyo Surge on Political Signals

A powerful rally in Japan set the tone: the Nikkei 225 jumped over 3% to a record above 49,000, after local media reported Japan’s ruling Liberal Democratic Party had secured backing from allies to form a coalition government with Sanae Takaichi as prime minister. Takaichi is viewed as fiscally dovish, with markets expecting more government spending and resistance to further Bank of Japan rate hikes. A parliamentary vote is slated for Tuesday, potentially installing Japan’s first female premier.

China Growth Slows but Beats

In China, Q3 2025 GDP grew 4.8% y/y, slightly topping expectations (4.7%) but easing from 5.2% in Q2—its slowest annual pace since Q3 2024—as disinflation and trade frictions persisted.

Eurozone Pricing Signals

In Europe’s largest economy, Germany’s producer prices fell 0.1% m/m in September and −1.7% y/y, underscoring still-subdued pipeline inflation pressures.

Luxury in the Spotlight; Earnings Calendar Builds

Kering (EPA: PRTP) will be closely watched after announcing the €4.0bn sale of its beauty unit to L’Oréal (EPA: OREP), part of a pivot back to core fashion under CEO Luca de Meo and a move to trim debt.

It’s a slow start for earnings today, but momentum builds through the week:

• Europe: L’Oréal (Tue); SAP, Barclays, Heineken (Wed); Kering, Roche, Unilever, Lloyds (Thu).
• U.S.: Tesla, Ford, General Motors, Netflix, Procter & Gamble, Coca-Cola, RTX, IBM, Intel all report this week.

What’s Next

With Asia’s risk-on impulse, a stable European open, and a heavy earnings slate, micro drivers are set to share the stage with macro headlines. Investors will parse corporate guidance for margins, pricing power, and demand elasticity as policy and geopolitical cross-currents continue to shape the backdrop.