By William Collins, consultant in stock markets – Eurasia Business News, November 2, 2026. Article no 3241
European stock markets closed mostly higher on November 2, as a sharp decline in oil prices eased inflation concerns and encouraged investors back into equities. Spain and France led the major markets, while Germany and Britain also advanced. Gold recovered from Friday’s steep selloff, supported by bargain buying and reduced anxiety about energy-driven inflation.
The session marked a reversal from Europe’s cautious opening. Investors initially weighed concerns about technology earnings and France’s credit outlook before diplomatic hopes surrounding Iran helped improve sentiment. However, commodity quotations varied throughout the day, making it important to distinguish stock-market closing figures from intraday oil and gold prices.
European Stock Market Performance
The pan-European STOXX 600 gained 0.42%, finishing near a two-month high. Spain’s IBEX 35 delivered the strongest performance among the major benchmarks listed below, while Switzerland’s SMI slipped marginally.
| European stock index | Closing level | Daily change |
|---|---|---|
| Spain: IBEX 35 | 18,957.80 | +1.63% |
| France: CAC 40 | 8,047.69 | +0.98% |
| Italy: FTSE MIB | 49,947.94 | +0.90% |
| Germany: DAX | 25,981.09 | +0.63% |
| United Kingdom: FTSE 100 | 10,761.33 | +0.29% |
These closing figures show a broadly positive European session, although performance differed by market and sector. Switzerland’s SMI ended 0.05% lower, demonstrating that the recovery was not universal.
London’s FTSE 100 registered its fourth consecutive daily advance. The index struggled for direction earlier in trading but moved into positive territory as crude prices dropped and Wall Street opened strongly.
Why European Shares Recovered
The main catalyst was relief over energy costs. Discussions involving Iranian officials and Qatari mediators raised expectations of progress toward ending the Middle East conflict, reducing some of the risk premium embedded in oil prices.
Lower crude prices offered potential benefits for transport companies and other fuel-intensive businesses. Airline shares strengthened, while energy producers faced pressure as investors adjusted expectations for petroleum revenues.
The change in sentiment also helped markets overcome an initially negative start. At approximately 08:22 GMT, the CAC 40, DAX and FTSE 100 were all lower, with the STOXX 600 down about 0.3%. Their subsequent recovery illustrates how strongly diplomatic developments influenced Monday’s trading.
Brent and WTI Oil Prices Fall Sharply
Brent and West Texas Intermediate crude both dropped more than 6% at one afternoon checkpoint. At 14:41 GMT, January-delivery Brent futures traded around $106.30 per barrel, down approximately 6.3%, while December-delivery WTI stood at $97.32, falling about 6.5%. These were intraday prices, not verified settlements.
The contracts had settled Friday at $113.43 for January Brent and $104.12 for December WTI. Comparisons should use those same contracts: the expiring December Brent contract had a different Friday settlement and should not be mixed into the calculation.
Diplomatic optimism drove the retreat, but negotiations did not constitute a completed peace agreement. Supply risks therefore remained relevant despite the sharp repricing.
Gold Price Rebounds After Friday’s Selloff
Gold’s bid price was at $3,958.50 per troy ounce at 10:02 a.m. New York time on November 2. Gold was up $83.50, or 2.16%, with an ask price of $3,960.50. The daily range ran from $3,879.40 to $3,967.30.
The rebound followed Friday’s approximately 3.6% decline to a one-year low. Analysts linked that earlier selling partly to a scramble for cash during the technology-stock retreat. Cheaper oil subsequently tempered inflation worries, giving bullion some breathing room.
For markets, the immediate theme was relief: cheaper oil supported a recovery, but earnings, election results and labour-market data still stood between Monday’s rebound and a more durable improvement in sentiment.
Read also : Gold : Build Your Wealth and Freedom
Gold is up about 2% today mainly because falling oil prices have eased fears of further Federal Reserve tightening, while a softer dollar, lower Treasury yields and bargain buying are helping it recover from Friday’s sharp selloff. It looks primarily like a rebound, rather than a new surge driven solely by safe-haven demand.
What Investors Are Watching Next
Attention now turns to Apple’s earnings, U.S. midterm elections and employment data. Monday’s gains improved sentiment, but European equities remain sensitive to corporate results and further changes in energy prices. The session demonstrated how geopolitical developments can simultaneously support stocks and gold while pushing oil sharply lower.
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© Copyright 2026 – Eurasia Business News. Article no. 3241
