European markets experienced a positive close on Monday, continuing the previous session's gains, driven by lower bond yields and optimism surrounding a potential Russia-Ukraine energy ceasefire. US President Donald Trump's assurance that there would be no military action against Iran prior to the midterm elections also contributed to the positive sentiment. Brent crude oil prices initially fell to $102.33 a barrel but later rose above $105, finishing the day on a high note.
Read More
The pan-European Stoxx 600 index rose by 0.65%. The UK's FTSE 100 increased by 0.99%, Germany's DAX gained 0.76%, and France's CAC ended with a 0.38% rise. Switzerland's SMI closed up by 0.66%. Other European markets such as Austria, Belgium, the Czech Republic, Denmark, Finland, Greece, Ireland, the Netherlands, Poland, Portugal, Russia, Spain, and Sweden saw significant to moderate gains. Norway posted a slight increase, while Iceland and Turkey finished lower.
In the UK, bank stocks showed notable strength, supporting the market's positive performance. Lloyds Banking Group and HSBC Holdings both rose by about 2.35%. Other banks, including Standard Chartered, Barclays, and Natwest Group, achieved gains of 1.7% to 1.9%. Convatec Group surged nearly 5%, and Lion Finance increased by 2.75%. Several other companies such as Diageo, Burberry Group, Smith & Nephew, Reckitt Benckiser, and Unilever also posted gains between 1.3% and 2.1%. Conversely, shares of recruiter Hays Plc plummeted by 8% after reporting a 3% decline in first-quarter like-for-like net fees, while Informa fell nearly 2.5%. WPP, IG Group Holdings, Vodafone Group, and Polar Capital Technology Trust ended their sessions down by 1.2% to 2%.
In Germany, Rheinmetall’s shares rose nearly 3%, and RWE gained about 2.3%. Other companies including SAP, Fresenius, and Deutsche Bank saw increases of 1% to 1.6%. Shares of wind turbine manufacturer Nordex Group jumped 4% after announcing a 29.5% rise in third-quarter orders for 2026. However, Infineon dropped by 2.8%, and Daimler Truck Holding, Mercedes-Benz, BASF, and Continental all recorded losses between 0.7% and 0.9%.
In France, Hermes International rose by 2.1%, with Thales, Dassault Systèmes, and LVMH also seeing gains of 1% to 2%. STMicroelectronics fell by 2.2%, while Teleperformance slid down by 1.4% and Orange dipped nearly 1%. Stellantis shares decreased by almost 1% following the announcement of a strategic pivot towards budget-friendly electric vehicles at the Paris Motor Show.