FX.co ★ European Stocks Approach Records

European stocks closed sharply higher on Monday, reaching their strongest levels since the record highs of late February, as signals emerged that the US and Iran may soon reach an agreement to restore energy exports from the Middle East. The Eurozone’s STOXX 50 rose 2% to 6,139, while the pan-European STOXX 600 gained 1.1% to 632.

US President Trump said negotiations with Iran had made favorable progress over the weekend, and Secretary of State Rubio expressed optimism about a potential deal. These developments drove a sharp decline in oil prices and bolstered European sovereign bonds.

Banks were among the main beneficiaries of the bond rally, with Santander, BBVA, and Deutsche Bank each advancing more than 4%. Lower energy prices also supported industrial heavyweights’ margins: Safran jumped 6%, and Schneider Electric added 3.5%.