European stocks reversed early losses to close higher on Monday, with the STOXX 50 up 2% and the STOXX 600 advancing 1%, as global risk appetite improved. Sentiment turned after President Trump said the US and Iran had held “productive” talks, triggering a five-day halt to planned strikes on key Iranian energy infrastructure. The pause comes ahead of a 48-hour deadline for Iran to fully reopen the Strait of Hormuz, which is set to expire later today.
The temporary truce sent oil prices sharply lower, easing inflation worries and lifting investor confidence. Most sectors moved into positive territory—technology led the advance—while energy lagged. ASML Holding climbed more than 5%, HSBC Holdings rose 2.8%, LVMH gained 3.9%, and Siemens surged 5.1%.
On the downside, Poste Italiane dropped more than 7%, ranking among the worst performers on the STOXX 600, after it announced a €10.8 billion bid for Telecom Italia. In contrast, shares of Telecom Italia gained 4%.
