European shares open higher on oil retreat, US futures rebound

European stocks opened firmly in the green on Monday, with all major benchmarks posting gains:

• Eurostoxx +0.9%
• Germany DAX +0.8%
• France CAC 40 +0.6%
• UK FTSE +0.4%
• Spain IBEX +0.7%
• Italy FTSE MIB +0.7%

The key factor behind the rally appears to be the decline in crude. Brent crude fell roughly 2%, trading around $102, as traders drew reassurance from signs that Saudi output could resume and Gulf crude shipments have held up better than expected. This is relieving some of the inflation and bond-market stress that dominated trading last week.

Friday's sharp declines, with European indices falling more than 1%, are partly behind the current upturn. Auto stocks were especially hard hit then, led by Volkswagen after it cut its outlook, and European banks also weakened as bond yields resumed their rise.

Bond markets have steadied for now. The 10-year US Treasury yield remained at 4.97%, while Germany's 10-year yield eased to 3.47%, down from around 3.51% on Friday.

Broader risk appetite is also supporting the gains. Asian technology stocks rose at the start of the week, and US futures have also recovered. S&P 500 futures gained roughly 0.5% and Nasdaq futures added 0.7%, boosting the upbeat mood as European trading began.

This suggests another relief rally. Falling oil, slightly steadier yields and positive US futures are providing room for equities to bounce, though the overall interest-rate environment still weighs after the Federal Reserve's hawkish pivot.