European stocks rose for the first time in three sessions during a week packed with corporate earnings, with easing geopolitical tensions also boosting market sentiment.
The Stoxx Europe 600 Index closed 0.8% higher.
Senior security officials from Saudi Arabia, Pakistan, and Turkey flew to Tehran in an effort to de-escalate tensions and restart negotiations aimed at preventing the Middle East conflict from widening further.
Danish pharmaceutical company Genmab A/S surged 12% after announcing positive progress on an experimental ovarian cancer therapy.
On the other hand, stocks with significant exposure to Brazil were hit by President Lula's unexpected election victory, including Telefonica.
Telefonica fell 6.4%, while Santander dropped 3.1%.
The left-wing incumbent president Lula won the election, defeating Flavio Bolsonaro, who was considered more market-friendly.
Because the Spanish stock market has relatively large exposure to Brazil, its benchmark index underperformed other major European indices.
Investors are also watching a dense wave of corporate earnings releases on both sides of the Atlantic this week, including some major U.S. technology companies.
In Europe, Volkswagen, Mercedes-Benz Group, as well as BNP Paribas and Lloyds Banking Group, are among those scheduled to report results this week.
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