Muscat: European stocks rebounded today after falling for a second consecutive session, supported by a drop in oil prices that boosted risk appetite ahead of the US Federal Reserve's monetary policy decision. The pan-European STOXX 600 index rose 0.4% to 636.81 points, with most major regional stock markets also gaining ground. Germany's DAX index climbed 0.4%.

According to Oman News Agency, oil prices fell 0.6%, providing a boost to stocks that typically suffer from high crude prices. The banking sector was among the top gainers, with Barclays rising 1.4% and Standard Chartered climbing 1.7%. These stocks had pressured the STOXX 600 in the previous session, dragging it to a three-month low.

In corporate developments, Babcock International maintained its annual performance outlook, sending shares from the British defense and engineering group up 2.5%. Shares in British housebuilder Barratt Redrow climbed 5.1%, despite trimming its home completion targets for fiscal year 2027, citing planning delays and fewer active sales outlets.