FX.co ★ European Stocks Cautiously Higher

European equities inched higher on Monday, with both the STOXX 50 and STOXX 600 advancing about 0.1%, as investors closely monitored developments in the Middle East. According to Axios, Iran has submitted a new proposal to the United States aimed at reopening the Strait of Hormuz and bringing the conflict to an end, while deferring nuclear talks to a later phase. The report, citing a US official and two informed sources, has stirred cautious optimism that diplomatic efforts could resume and potentially yield a resolution. At the same time, markets are bracing for a busy week of major central bank decisions, including policy announcements from the Federal Reserve, the European Central Bank, and the Bank of England. On the macroeconomic front, German consumer confidence has slipped to its lowest level in three years, underscoring persistent concerns about the region’s economic outlook.