European equities traded firmly higher on Monday, building on the previous session’s gains after U.S. President Donald Trump and Iranian officials announced that an agreement had been reached to bring an end to more than 100 days of conflict. Leaders around the world welcomed the development and called for the deal to be implemented without delay.
ECB Official Warns Energy Markets Need Time to Recover
Speaking at a monetary policy conference in Frankfurt, European Central Bank Governing Council member Joachim Nagel said it could take several months before global oil supply conditions fully return to normal following the recent disruptions.
His comments came as investors continued to assess the potential economic impact of easing geopolitical tensions and lower energy prices.
German Wholesale Inflation Remains Elevated
On the economic front, data from Destatis showed that German wholesale prices increased 5.9% year-on-year in May.
Although the pace of growth slowed slightly from the 6.3% increase recorded in April, wholesale inflation remained elevated following the reduction of the energy tax on mineral oil products.
Major European Indices Move Higher
Germany’s DAX Index gained 1.4%, while France’s CAC 40 advanced 1.3%.
In contrast, the UK’s FTSE 100 traded only marginally above the flatline, underperforming its continental peers despite the broader positive sentiment across European markets.
Airlines and Luxury Shares Lead the Rally
Travel and luxury goods stocks were among the strongest performers as investors welcomed the sharp decline in oil prices.
At the same time, energy companies came under pressure after Brent crude futures dropped more than 4%, falling toward $83 per barrel and reaching their lowest level in three months.
Bayer and Schneider Electric Post Strong Gains
Bayer AG (TG:BAYN) moved higher after announcing that its low-dose Gadoquatrane product had received approval from the U.S. Food and Drug Administration.
Schneider Electric (EU:SU) also posted notable gains after unveiling a partnership with Foxconn focused on artificial intelligence data centre infrastructure.
Frasers Group Falls After Accent Group Bid
Elsewhere, Frasers Group (LSE:FRAS) traded lower after launching an all-cash takeover proposal for Accent Group.
Investors appeared cautious about the acquisition despite the broader strength seen across European equity markets.
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