European stock markets closed higher on Monday, driven by falling oil prices and optimism about progress in stalled US-Iran peace talks. The FTSE 100 index rose 0.8% to 10,739.01, while the FTSE 250 climbed 1.2% to 24,491.37. In France, the CAC 40 gained 0.9%, and in Germany, the DAX 40 rose 1.1%. The positive performance came despite political challenges in Germany, where the ruling CDU party faced regional election losses to far-right and far-left parties. However, investors remained focused on economic reforms and fiscal policy. Oil prices fell to $100.28 a barrel, down from $104.37 the previous Friday, as Donald Trump signaled openness to meeting with Iranian President Masoud Pezeshkian at the UN General Assembly. This, combined with reports of increased oil shipments through the Strait of Hormuz, contributed to the decline. In the US, the Dow Jones Industrial Average rose 0.5%, the S&P 500 added 1.0%, and the Nasdaq Composite climbed 1.6%. US Treasury Secretary Scott Bessent highlighted a "very successful" meeting with Chinese officials on trade and AI, which may pave the way for agreements ahead of a planned summit between Trump and Chinese President Xi Jinping. In the UK, the pound remained stable at $1.3372 against the dollar, while the euro rose slightly to $1.1470. The dollar strengthened against the yen, trading at 157.46 yen. On the FTSE 100, mining companies like Metlen Energy & Metals and Antofagasta saw significant gains, while energy giants BP and Shell fell as oil prices dropped. JD Sports rose 0.4% after announcing a partnership to launch its brand in Mexico, tapping into a growing activewear market. On the FTSE 250, Entain partially recovered from earlier losses after its CFO bought shares, but Elixirr International’s shares plunged 20% amid concerns about its growth potential. The company reported strong first-half profits but lower free cash flow, prompting a downgrade from analysts. Gold prices fell slightly to $4,352.65 an ounce. Tuesday’s market calendar includes results from Kingfisher and Smiths Group, along with UK public sector borrowing data and the Richmond Fed manufacturing index in the US. Financial markets in Japan will be closed for a public holiday.