European financial markets saw a mix of developments on Monday as investors navigated easing oil prices, corporate deals, and significant business disruptions across the region.
The pan-European STOXX 600 rebounded after early losses as crude prices pulled back, offering relief to markets rattled by the escalating Middle East conflict.
Meanwhile, artificial intelligence infrastructure firm Nebius surged after announcing a massive contract with Meta Platforms, while British car park operator National Car Parks entered administration.
In the banking sector, UniCredit intensified its long-running attempt to acquire Commerzbank with a fresh takeover proposal.
European markets rebound as oil prices ease
European equities recovered from early losses on Monday as oil prices declined, easing pressure on investors concerned about the impact of the Middle East conflict on global markets.
The pan-European STOXX 600 index closed 0.44% higher, snapping a three-day losing streak.
The rebound was supported by gains in real estate stocks, which rose 1.48%, and energy shares, which advanced 1.2%.
Markets have been highly sensitive to movements in crude oil prices since the US and Israeli strikes on Iran began more than two weeks ago.
Oil prices surged during that period but eased on Monday amid hopes that more ships would be allowed to transit through the Strait of Hormuz, a critical route for global oil shipments.
Brent crude was trading around $100 at the time of writing.
Investor attention is now turning to a busy week of central bank meetings, including those by the Federal Reserve, European Central Bank, and Bank of England.
Nebius shares surge after securing $27B AI deal with Meta
Shares of Nebius jumped sharply after the company announced a major partnership with Meta Platforms to supply artificial intelligence infrastructure.
Nebius stock surged more than 15% reaching $130, its highest level since November last year.
The company said Meta will pay up to $27 billion over the next five years to access Nebius’ graphics processing units (GPUs) as it expands its artificial intelligence capabilities.
The partnership is expected to begin in early 2027 and builds on a previous $3 billion agreement signed last year.
In a statement, Nebius said:
“We are pleased to expand our significant partnership with Meta as part of securing more large, long-term capacity contracts to accelerate the build-out and growth of our core AI cloud business. We will continue to deliver.”
The stock has also been boosted by Nvidia’s $2 billion investment in Nebius, reinforcing expectations that demand for AI infrastructure will continue to grow.
Analysts expect Nebius’ revenue to rise sharply as a result of the deal.
Consensus estimates suggest the company could generate $401 million in revenue this quarter, representing 625% year-over-year growth, while annual revenue could jump 529% to more than $3.3 billion.
UK car park operator NCP enters administration
British car park operator National Car Parks (NCP) has entered administration, putting 682 jobs at risk.
Administrator PwC said demand for parking had not recovered to pre-pandemic levels, citing structural changes in commuting habits.
PwC said NCP had faced “shifts in commuting and customer driving patterns”, which reduced demand for its services.
The company also struggled with “long-term, inflexible” leases on unprofitable sites, preventing it from cutting costs effectively.
PwC confirmed that all NCP locations remain open and trading continues as normal while options for the business are explored.
“We will be engaging with landlords, employees, and other stakeholders as we explore all options.”
Founded in 1931, NCP operates 340 car parks across the UK, including facilities at airports, hospitals, and train stations.
The company’s financial problems were severe.
As of September last year, its debts were £305 million greater than the value of its assets, according to filings by its parent company Park24.
UniCredit launches fresh $28 billion bid for Commerzbank
Italian lender UniCredit has intensified its effort to take control of Commerzbank, offering to buy the remaining shares in the German bank.
The proposal values Commerzbank at roughly €35 billion, implying a potential takeover cost of about €24 billion ($28 billion) for the remaining shares.
UniCredit is offering 0.485 shares of UniCredit for each Commerzbank share, representing a 4% premium to the German bank’s closing price on Friday.
Commerzbank shares gained 8% in the session while UniCredit stock was up by 0.54%.
Chief Executive Andrea Orcel said the proposal was intended to reopen discussions with Commerzbank and its stakeholders.
“Our message to Commerzbank today is ‘It is now time to talk,'” he said in a call with analysts.
The move is part of Orcel’s long-running campaign to merge Commerzbank with HypoVereinsbank, UniCredit’s German subsidiary.
However, the deal faces political and regulatory hurdles.
The German government, which owns about 12% of Commerzbank, has resisted the idea of the bank falling under foreign control.
Commerzbank’s management said it was not involved in the proposal but would review it once the full details are published.
“We are convinced of the strength and potential of our strategy,” said Bettina Orlopp, Commerzbank’s chief executive.
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