European stocks rise for second straight session

European stocks edged higher on Tuesday, extending gains into a second consecutive session, with the STOXX 50 up 0.2% and the broader STOXX 600 advancing 0.5%. Sentiment remained cautious as investors balanced a fresh round of corporate news against lingering political and macroeconomic uncertainty.

In France, political instability stayed in focus after yet another prime minister lost a confidence vote on Monday, forcing President Emmanuel Macron to begin the search for the country’s fifth head of government in under two years. The turmoil in Paris has raised concerns about fiscal policy consistency and broader European cohesion, though markets so far appear resilient.

Attention also turned to a heavy week of economic events, with traders awaiting the European Central Bank’s policy decision later this week, along with critical US inflation data and revisions to payroll figures that could shape expectations for global monetary policy.

On the corporate front, deal-making activity drew headlines. Novartis (-0.4%) announced an agreement to acquire biopharmaceutical group Tourmaline Bio, while Anglo American (+5.5%) surged after confirming a merger deal with Canada’s Teck Resources. Italian banking stocks were also active: Monte dei Paschi di Siena (+4.5%) secured a controlling 62% stake in Mediobanca, which itself rose 4.3% on the news.

Overall, while corporate catalysts provided a positive undertone, markets remain sensitive to political risk in Europe and upcoming macro data that could determine the near-term trajectory for risk assets.