European shares rise on lower oil prices, bank strength ahead of earnings

European shares climbed on Monday, Oct 12, with banking stocks driving the gains as oil prices fell due to hopes of a Russia-Ukraine energy ceasefire. The Stoxx 600 index for Europe increased by 0.43 percent to 634.25 points by 0709 GMT. Spanish banking-focused IBEX gained 1.3 percent, the highest among regional peers. Oil prices declined as traders anticipated more Russian supplies following a US-Russian deal to pause attacks on each other's energy infrastructure.

Eurozone bond yields softened, adding to the positive sentiment for risk assets. Investors will now focus on corporate earnings from Europe to assess the health of businesses amidst geopolitical tensions and elevated interest rates. LVMH will release results after European markets close, while chipmaker ASML and investment firm EQT are scheduled to report later in the week.

Nordex, an onshore wind turbine manufacturer, rose 2.5 percent after reporting a 30 percent year-on-year increase in project order intake for Q3.