Key facts
- European shares rose nearly 1% on Monday, with the STOXX 600 index up 0.8% to 649.34.
- A pause in U.S.-Iran hostilities boosted risk appetite and lowered oil prices.
- Brent crude futures fell 6% to approximately $90 a barrel.
- Energy stocks declined 2%, while travel and leisure stocks gained 2.4%.
- Vodafone shares rose 3.7% after the company raised its financial outlook.
European shares climbed nearly 1% on Monday, as a pause in U.S.-Iran hostilities over the weekend lowered oil prices and boosted investor risk appetite. The pan-European STOXX 600 index was up 0.8% at 649.34 as of 0706 GMT.
A senior Iranian official told Reuters that Iran would halt attacks if the U.S. does the same, following Washington's pause in its bombing campaign amid concerns about depleting its arsenal.
Brent crude futures dropped 6% to around $90 a barrel, pressuring energy stocks which lost 2%, joining utilities as the only declining sectors in the STOXX 600.
Travel and leisure stocks led broader gains, up 2.4%, as lower oil prices improved the outlook for airlines. Shares of Lufthansa and IAG gained 3.7% each, while Ryanair added 3.4%.
Vodafone advanced 3.7% after the telecom raised its outlook following its Safaricom deal, stating it expects to deliver results at the upper end of its revised range.
Markets are also bracing for a pivotal week of earnings from major U.S. tech companies including Microsoft, Meta Platforms, Amazon.com and Apple.