European Stocks Rally On Easing Iran Tensions, Oil Decline

(RTTNews) - European stocks moved higher on Monday with several markets hitting multi-month or multi-week highs, as easing U.S.-Iran tensions, weak oil prices and some encouraging corporate earnings updates lifted sentiment.

Oil prices fell sharply after the warring nations Iran and the U.S. pausing military strikes over the weekend, paving the way for talks to avoid a return to full-scale war.

After the U.S. paused its strikes against Iran for a second night, Iran stopped conducting counterattacks. According to reports, Pakistan is exploring a path toward new U.S.-Iran talks over ending the conflict.

Brent crude futures fell to $84.65 a barrel before recovering slightly to $85.87 a barrel, still down nearly 6.5% from previous close.

The pan European Stoxx 600 edged up 0.02%. The U.K.'s FTSE 100 gained 0.42%, Germany's DAX climbed 1.04% and France's CAC 40 advanced 0.4%, while Switzerland's SMI jumped 0.66%.

Among other markets in Europe, Czech Republic, Denmark, Greece, Iceland, Ireland, Poland, Russia, Spain and Sweden ended higher.

Austria, Belgium, Finland, Netherlands, Norway, Portugal and Türkiye closed weak.

In the UK market, Vodafone Group climbed nearly 5% after the telecom major said it expects full-year earnings to be at the upper end of guidance.

Relx, Autotrader Group, Airtel Africa, JD Sports Fashion, ICG, The Sage Group, Entain, BT Group and Marks & Spencer gained 3%-4.5%.

Coca-Cola Europacific Partners, Pearson, Compass Group, Experian, GSK, Pershing Square Holdings, LSEG, Convatec Group, Smith & Nephew and Haleon moved up 1.8%-3%.

Glencore ended down by about 3.4%. BP, Polar Capital Technology Trust, IMI, Antofagasta, Anglo American Plc, Centrica, Weir Group, Spirax Group, National Grid and Halma lost 1%-2.5%.

In the German market, SAP surged nearly 8%. The company, which reported stronger-than-expected second-quarter earnings recently, has launched the second phase of its €10 billion share buyback programme.

Zalando moved up more than 4%. Adidas gained about 3.5%. Deutsche Telekom, Bayer, Vonovia, Munich RE, MTU Aero Engines and Deutsche Boerse moved up 2%-2.7%.

Beiersdorf, Rheinmetall, Merck, Mercedes-Benz, Commerzbank, Scout24, Hannover RE, Siemens Healthineers, Fresenius Medical Care, Airbus and Deutsche Bank gained 1.3%-2%.

Siemens gained after adding new Nvidia AI software to its Intelligence Center X.

Infineon fell 3.7%. Hochtief, RWE, E.ON, Siemens Energy and Volkswagen also ended notably lower.

In the French market, Capgemini surged nearly 6%. Pernod Ricard, Thales, Dassault Systemes, Carrefour, Sanofi, Edenred and Publicis Groupe climbed 2%-3%.

Teleperformance, EssilorLuxottica, Orange, BNP Paribas, Michelin, Renault, Societe Generale, AXA, LVMH, Danone, Safran, Hermes International and Bureau Veritas also closed with strong gains.

STMicroelectronics, Engie, TotalEnergies, Legrand, Veolia Environment, ArcelorMittal and Bouygues declined sharply.

In economic news, Germany's Ifo Business Climate Index rose to 86.6 in July, marking a third consecutive monthly increase and slightly exceeding market expectations of 86, data from the Ifo Institute showed.

Business expectations for the coming months improved significantly, rising to 86.7 from 84.3 in June, while companies' assessment of current conditions edged down to 86.5 from 87.0.

Loans to the euro area private sector registered a steady growth in June, data published by the European Central Bank showed Monday. Adjusted loans to the private sector increased 3.9% year-on-year in June, the same rate of growth as seen in May.

A report from the Confederation of British Industry said the CBI retail sales balance improved to -26 in July from -54 in June, well above market expectations of -45, signaling the smallest decline in UK retail sales in six months. The CBI said the sector continues to face headwinds from weak consumer confidence and elevated cost pressures, leaving the outlook subdued.