European equities advanced on Monday as a sharp decline in crude oil prices eased concerns about energy-driven inflation. Investors also monitored the possibility of diplomatic progress over the Middle East conflict during this week’s United Nations General Assembly.
The pan-European Stoxx 600 gained approximately 1.15%, while the UK’s FTSE 100 rose 1.05%. Germany’s DAX advanced 1.14%, and France’s CAC 40 climbed nearly 1%.
Lower energy prices supported market sentiment as investors assessed developments ahead of meetings involving US President Donald Trump and Gulf-state leaders in New York.
Oil Prices Retreat Ahead of UN Diplomatic Meetings
Brent crude futures fell to $100.20 per barrel before recovering to $101.28, leaving prices as much as 2.5% below their previous closing level during the session.
The decline reflected expectations that diplomatic discussions surrounding the Middle East conflict could lead to progress, alongside hopes for an improvement in regional oil supply conditions.
Ahead of a meeting with Gulf-state leaders on the sidelines of the UN General Assembly, Trump warned Iran of severe economic consequences if it failed to reach an agreement. He also raised the possibility of military action against the country’s leadership.
Trump indicated that he could meet Iranian President Masoud Pezeshkian in New York and suggested that significant developments might occur soon.
Describing his position as a “deciding mode”, Trump said he was considering military action, continued economic pressure or a negotiated agreement.
Investors continued to monitor the diplomatic situation for its potential implications for oil supplies, energy costs and inflation.
Major European Indices Record Gains
The decline in crude prices helped support European stock markets by reducing some concerns about the impact of energy costs on businesses and consumers.
The Stoxx 600 rose around 1.15%, reflecting gains across the broader European market.
In London, the FTSE 100 increased 1.05%, while Germany’s DAX climbed 1.14%. France’s CAC 40 was nearly 1% higher.
The advances came as investors considered whether lower oil prices could ease inflationary pressures, although developments in the Middle East remained a source of uncertainty.
UK House Prices Increase for First Time in Four Months
In UK economic news, property website Rightmove reported that average asking prices increased in September for the first time in four months.
Prices rose 0.7% from August, marking the first monthly increase since May.
The advance exceeded the average September increase of 0.5% recorded over the previous ten years.
Rightmove said the figures reflected early signs of the seasonal improvement in housing market activity typically associated with autumn.
The data provided an additional indication of conditions in the UK property market as investors assessed the broader economic outlook.
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