European stock markets closed higher on Monday, with the FTSE 100 index rising 0.8% to 10,739.01, Germany's DAX advancing 1.1%, and France's CAC 40 jumping 0.9%. This positive sentiment was largely attributed to a significant drop in oil prices amid hopes for progress in stalled US-Iran peace talks. Brent crude for November delivery fell 3.9% to $99.79 a barrel, while WTI for November dropped 4.3% to $91.97, moving back below the $100 mark. The decline in oil was spurred by reports of robust oil and liquefied natural gas flows through the Strait of Hormuz, which are at a six-month high, and US President Donald Trump's indication that he would be open to meeting his Iranian counterpart, Masoud Pezeshkian, at the UN General Assembly.
In London, mining stocks were among the top performers, benefiting from easing commodity pressures. Metlen Energy & Metals surged 7.87%, Antofagasta gained 4.79%, and Anglo American advanced 4.05%. Other notable risers on the FTSE 100 included Spirax Group, IG Group, and Aberdeen. Conversely, oil companies like Ithaca Energy, BP, and Shell saw declines, falling 4.1%, 2.8%, and 1.4% respectively, due to the lower oil prices.
The positive market mood extended to the US, where the Dow Jones Industrial Average was up 0.5%, the S&P 500 added 1.0%, and the Nasdaq Composite firmed 1.6% at the time of London's closing bell. US Treasury yields narrowed, with the 10-year yield quoted at 4.97% (down from 5.01%) and the 30-year yield at 5.30% (down from 5.34%). The pound remained stable against the dollar at $1.3372 but eased against the euro to EUR1.1658. The euro firmed slightly to $1.1470, while the dollar strengthened against the yen to JPY157.46. Gold, a traditional safe haven, saw a decline, with December futures falling 0.65% to $4,396.72 an ounce, suggesting reduced investor demand amid diplomatic optimism. The overall sentiment was also boosted by apparent progress in US-China discussions on trade and artificial intelligence.
