European equity markets traded higher on Monday as investors welcomed signs of improving relations between the United States and Iran, reducing concerns over energy supplies and geopolitical risk.
Brent crude dropped about 6% to trade near $90 a barrel after Washington and Tehran suspended military operations over the weekend, opening the door to renewed diplomatic discussions aimed at preventing a broader regional conflict.
Iran also reported progress in negotiations with Oman regarding the management of the Strait of Hormuz, raising optimism that one of the world’s most important oil shipping routes will remain open without further disruption.
Market participants are now shifting their focus toward a busy week of corporate earnings from major U.S. technology companies, alongside the Federal Reserve’s upcoming monetary policy decision.
Major European indices move higher
Germany’s DAX gained 1.6%, leading regional markets, while France’s CAC 40 added 0.8%. The UK’s FTSE 100 also traded higher, advancing 0.5%.
Carmakers benefit from continued EV demand
Automotive stocks posted solid gains after recent industry figures showed demand for electrified vehicles continued to support growth across the European car market in June.
Volkswagen (TG:VOW3), Mercedes Benz (TG:MBG), Volvo (FTSE:SSVOLVO) and Renault (EU:RNO) all climbed between 1% and 2%.
DCC agrees takeover as Vodafone and AstraZeneca climb
DCC Energy (LSE:DCC) gained more than 1% after the Irish energy distributor accepted a £5.75 billion takeover proposal from private equity groups KKR and Energy Capital Partners.
Vodafone Group (LSE:VOD) jumped 4% after reporting a strong first quarter and saying it now expects full-year earnings to finish at the upper end of its guidance range.
AstraZeneca (LSE:AZN) rose 1.3% after delivering better-than-expected second-quarter profit while reaffirming both its full-year and long-term financial outlook.
Siemens strengthens AI offering
Shares of Siemens (TG:SIE) advanced 1.4% after the industrial technology group announced the integration of new Nvidia artificial intelligence software into its Intelligence Center X platform.
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