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Europe close: Stocks hit one-month high as oil prices drop

Mon 03 August 2026 16:35 | A A A

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(Sharecast News) - European stocks rose to a one-month high on Monday, buoyed by hopes of renewed talks between the US and Iran, while oil prices dropped sharply despite contradictory comments from Tehran.

The benchmark Stoxx 600 finished 0.5% higher at 652.09, with gains of 1% or more in Frankfurt, Paris, Milan and Madrid partly offset by losses in London and Zurich.

This was the highest closing price for the Stoxx 600 since 3 July.

Brent crude was 4.8% at lower at $83.67 a brrel by the close of play in Europe, after US President Donald Trump once again pulled back from threats to bomb Iran, saying talks with Tehran would take place today.

Trump claimed he had pulled his threatened attacks at the behest of Gulf states and also, without any credible evidence, said Iran had missiles that could strike the US.

Iran said it was nearing a deal with Oman on opening a safe route through the Strait of Hormuz for commercial shipping. However, Iranian foreign ministry spokesman Esmaeil Baghaei told a weekly press briefing that Iran is not currently holding any talks with the US, contradicting Trump.

In economic news, retail sales in Germany fell by the most in more than a year in June, according to figures released on Monday by the country's federal statistical office, with consumer uncertainty dampening hopes for a rebound in economic activity. Retail sales declined by 1.1% in price-adjusted terms, offsetting the revised 1.2% increase registered in May, Destatis reported, much worse than the 0.5% fall expected by analysts.

In equity news, German defence and security electronics firm Hensoldt was the high riser on the Stoxx 600, surging 8% after reporting that order intake doubled in its first half to 2.82bn while its order backlog passed 10bn.

London's AstraZeneca slumped 9% on a report of tie-up talks with US peer Bristol Myers Squibb. According to the Financial Times, citing people familiar with the matter, the companies have held discussions about a tie-up in recent months, in a deal that would create one of the world's biggest pharmaceutical groups, valued at nearly $400bn.

UK housebuilders Persimmon, Vistry and Barratt Redrow jumped as investors scaled back Bank of England rate hike expectations after the slump in oil prices.

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