European Stocks Rally On Oil Decline, Diplomatic Optimism

(RTTNews) - European markets closed notably higher on Monday, rebounding strongly from previous session's losses, as inflation concerns eased thanks to falling oil prices amid hopes the diplomatic efforts from Iran and the U.S. will help ease tensions in the Middle East.

Ahead of a crucial meeting between U.S. President Trump and Gulf-state leaders on the sidelines of the United Nations General Assembly, Trump warned Iran that it would fail economically or face its leadership being wiped out if it didn't make a deal.

Trump indicated potential for a meeting with Iranian President Masoud Pezeshkian in New York, adding that very big things could happen soon and he is in a "deciding mode" on military action, continued economic pressure or a deal.

Trump indicated potential for a meeting with Iranian President Masoud Pezeshkian in New York, adding that very big things could happen soon and he is in a "deciding mode" on military action, continued economic pressure or a deal.

Brent crude futures dropped to $100 a barrel, losing about 4%.

France's equity benchmark CAC 40 moved higher on Monday as stocks gained in strength amid slightly easing concerns about inflation after oil prices fell sharply on hopes for diplomatic progress to ease tensions in the Middle East.

Ahead of a crucial meeting between U.S. President Trump and Gulf-state leaders on the sidelines of the United Nations General Assembly, Trump warned Iran that it would fail economically or face its leadership being wiped out if it didn't make a deal.

Trump indicated potential for a meeting with Iranian President Masoud Pezeshkian in New York, adding that very big things could happen soon and he is in a "deciding mode" on military action, continued economic pressure or a deal.

Brent crude futures dropped to 101.19, losing more than 2.5%.

Shares from financial, mining and consumer sectors were among the major gainers. Tech stocks gained amid renewed optimism surrounding AI. Energy stocks were under pressure due to declining oil prices.

The pan European Stoxx 600 climbed 1.02%. The UK's FTSE 100 moved up 0.75%, Germany's DAX gained 1.07% and France's CAC 40 finished with a gain of 0.92%. Switzerland's SMI advanced 1.23%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Greece, Ireland, Netherlands, Poland, Portugal, Spain, Sweden and Türkiye closed with strong gains.

Denmark, Norway and Russia ended weak, while Iceland closed little changed.

In the UK market, Metlen Energy & Metals soared 7.6%. Spirax Group, Rolls-Royce Holdings, Marks & Spencer, Polar Capital Technology Trust, Antofagasta, IAG, Burberry Group, Anglo American Plc, IG Group Holdings, Lion Finance, Halma and Informa climbed 2.5%-4.1%.

Smiths Group, Next, Diploma, ICG, St. James's Place, British Land, AutoTrader Group, Melrose Industries, Barclays, Land Securities, Weir, Legal & General and Tritax Big Box REIT also moved notably higher.

Energy stocks BP and Shell dropped 2.8% and 1.4%, respectively.

Glencore ended 2.6% down, while Fresnillo lost 1.6%. Entain drifted down 1.2%.

In the German market, Infineon climbed nearly 4.5%. Siemens moved up 3.6%, while MTU Aero Engines, Commerzbank, Deutsche Post, Symrise, Continental, Merck, Siemens Energy, Bayer, Scout24, Gea Group and Hochtief gained 1%-3%.

Porsche Automobil Holding ended 3.4% down. Volkswagen, Fresenius, Vonovia and Brenntag lost 1%-2%.

In the French market, Schneider Electric, STMicroelectronics, Safran, Legrand, Eurofins Scientific, L'Oreal, Accor, Dassault Systemes, EssiloLuxxotica, Saint-Gobain, Air Liquide, Capgemini and Vinci gained 1%-3.2%.

Societe Generale moved up sharply after raising its profitability target for 2029. The lender expects revenue growth of approximately 3% on average between 2026 estimated and 2029. ROTE is expected to be between 13% and 14% in 2029 and more than 15% in 2030 and beyond.

Edenred, Kering, Engie, Renault, TotalEnergies and Thales shed 0.6%-2.1%.

In economic news, UK house prices increased for the first time in four months in September, reflecting early signs of the usual increase in activity seen during the Autumn period, property website Rightmove said Monday.

Average asking prices increased 0.7% month-on-month in September, marking the first rise since May. The increase was also bigger than the ten-year September average of 0.5%.