European Stocks Approach Records

European stocks closed sharply higher on Monday, the highest since their record highs in late February on signals that the US and Iran could soon agree to a deal that would restore energy exports from the Middle East. The Eurozone's STOXX 50 gained 2% to 6,139 and the pan-European STOXX 600 added 1.1% to 632. US President Trump stated that negotiations with Iran proceeded favorably during the weekend and Secretary of State Rubio signaled a degree of optimism on an incoming deal, driving oil prices to decline sharply and supporting European sovereign bonds. Banks benefited sharply from the rally for bonds, with Santander, BBVA, and Deutsche Bank adding more than 4%. The drop in power prices also aided margins for industrial giants, with Safran soaring 6% while Schneider added 3.5%.

European stocks opened the week on a strong note, with the STOXX 50 climbing 1.1% and the STOXX 600 rising 0.6% to near three-month highs, as investors grew increasingly optimistic about a US-Iran agreement that could reopen the Strait of Hormuz. President Trump said negotiations with Iran were “proceeding in an orderly and constructive manner,” while adding that he was “in no rush” to secure a final deal. At the same time, senior US officials signaled that Washington and Tehran were edging closer to an agreement that would restore access to the key shipping route. The prospect of easing geopolitical risks pushed oil prices sharply lower. Banks led the gains, with BBVA rising 2.5%, Santander up 2%, UniCredit advancing 2%, and BNP Paribas adding 1.7%. Industrial stocks also performed strongly, including Safran (+5.1%) and Siemens (+1.9%), while airlines rallied on the back of lower fuel prices, namely Lufthansa (+4.1%) and Air France-KLM (+7.6%).

EU50 increased to 6072.00 Index Points, the highest since April 2026. Over the past 4 weeks, Euro Area Stock Market Index (EU50) gained 3.64%, and in the last 12 months, it increased 12.57%.