European stock markets saw modest gains at the start of the new trading week as investors monitored progress in US-Iran talks and awaited outcomes from several central bank meetings.
The pan-European Stoxx 600 index rose by 0.05%. Most major European indices advanced, although sector performance was mixed.
Major index performance: - France's CAC 40 Index: 8,169.83 points, +12.01, +0.15% - Italy's FTSE MIB Index: 47,689.66 points, +33.55, +0.07% - UK's FTSE 100 Index: 10,380.07 points, +0.99, +0.01% - Germany's DAX Index: 24,221.65 points, +92.67, +0.38% - Spain's IBEX 35 Index: 17,749.80 points, +58.50, +0.33% - Stoxx Europe 600 Index: 610.93 points, +0.28, +0.05%
Oil and gas sectors led the gains, rising 0.6% driven by higher energy prices, followed by retail sectors which increased over 0.5%. In contrast, food and beverage sectors declined 0.5%, while chemical sectors fell 0.4% amid market concerns that shipping bottlenecks in the Strait of Hormuz would persist.
Global crude benchmarks showed significant increases, with Brent crude rising over 2% to $107.46 per barrel and US West Texas Intermediate crude gaining 1.8% to $96.14 per barrel.
According to a Sunday report citing one US official and two informed sources, Iran presented a new proposal to the United States involving reopening the Strait of Hormuz, ending the conflict, and postponing nuclear negotiations to a later date.
This development followed the US president's cancellation on Saturday of plans to send envoys to Islamabad for negotiations with Iran. The president stated on social media that the trip would be too time-consuming, adding that "we hold all the cards" and that Iran could simply call if they wanted to talk.
An Iranian foreign ministry spokesperson stated over the weekend that no meeting plans currently exist between Iranian and US officials.
German wind turbine manufacturer Nordex led the Stoxx 600 index, surging over 10% in early trading following strong first-quarter earnings. The Hamburg-based company reported an 11% increase in quarterly sales to €1.6 billion, with net profit reaching €53.6 million, significantly higher than the €7.9 million recorded in the same period of 2025.
Other wind energy companies also rose on Monday: Danish industry leader Vestas Wind Systems gained 3.2%, while European energy major Ørsted advanced 2.8%.
Market attention will shift later this week to central bank meetings, with the Federal Reserve, European Central Bank, and Bank of England all holding key policy sessions as Middle East conflicts reshape inflation and growth expectations.
The Federal Reserve's rate decision meeting on Wednesday may be the final meeting for the current chair before a scheduled transition in May. The US Department of Justice announced on Friday that it had dropped its criminal investigation into the chair, after which a senator lifted opposition to the nominee's confirmation.
Both the European Central Bank and Bank of England will announce their latest monetary policy decisions on Thursday. Economists anticipate both banks will maintain current benchmark rates this month while leaving room for potential rate cuts later this year.
Investors also monitored domestic US developments following an incident on Saturday where a man carrying multiple weapons attempted to breach a security checkpoint at a Washington event before being arrested by Secret Service agents. The suspect was identified as a California resident and remains in custody for investigation.
Monday's corporate and economic data included earnings from Deutsche Börse and the release of Germany's GfK consumer confidence index.
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