FX.co ★ European Stocks Close Firmly Higher

European stocks made a notable recovery on Monday, reversing five consecutive sessions of losses. This rebound was driven by easing concerns that tensions between Israel and Iran might adversely affect the global economy, resulting in a widespread lift for equities. Recent developments revealed that Tehran is open to resuming nuclear negotiations with the United States, indicating a willingness to de-escalate its ongoing conflict with Israel. This development has boosted optimism that the conflict will not disrupt global economic activity or pressure energy prices. This week, markets are also anticipating significant monetary policy announcements from key central banks, including the Bank of England (BoE), the Swiss National Bank (SNB), the Riksbank, the Norges Bank, and outside Europe, decisions are awaited from the Federal Reserve (Fed) and the Bank of Japan (BoJ). Bank stocks led the market gains, buoyed by declining bond yields, with major institutions like Santander, BNP Paribas, Intesa Sanpaolo, and UniCredit experiencing increases ranging from 2.5% to 3%. The tech sector also saw a robust performance, with companies such as Adyen and Nokia rising between 2% and 3%. Additionally, Kering shares soared by 12% amid speculation that Renault's CEO, Luca de Meo, might join the luxury brand.