2026.06.2216:08:05UTC+00European Stocks Close at Records

European equities finished sharply higher at fresh record levels on Monday, supported by a decline in energy prices. The Euro STOXX 50 rose 0.4% to 6,320 and the STOXX Europe 600 gained 0.7% to 640, with both indices closing at all-time highs.

Sentiment was buoyed after Iran reported progress in the opening phase of talks with the US on a permanent peace agreement, following the recent signing of a memorandum of understanding between the two sides. The prospect of a more durable easing in geopolitical tensions reinforced expectations that energy prices will remain subdued, helping to contain inflationary pressures.

Banks led the advance as sovereign bond yields in the Eurozone retreated, improving the outlook for credit demand. Shares in Santander, BBVA, and Nordea each climbed by around 2%. Infineon also outperformed, jumping 5% as it benefited from another strong session for companies tied to AI infrastructure, with hyperscale operators continuing to raise capital for major investment programs.

In contrast, luxury stocks were under pressure. LVMH fell 3.6% and Hermès dropped 6%, weighed down by cautious guidance from Moncler and recent sector downgrades by several major brokers.