European stocks close higher as US-Iran tensions ease

European stock markets closed higher on Monday as investors focused on signs of easing tensions between the US and Iran.

The pan-European Stoxx Europe 600 index edged up 0.02% to close at 644.62 points.

The UK’s FTSE 100 gained 0.42% to 10,781.75 points, while Germany’s DAX 40 rose 1.04% to 25,361.03.

France’s CAC 40 increased 0.4% to 8,406.06, and Italy’s FTSE MIB advanced 0.49% to 52,054.95.

Spain's IBEX 35 also rose 0.8% to end the day at 19,741.30

The euro/dollar exchange rate rose 0.04% to 1.1370 as of 1730GMT.

US President Donald Trump said on Monday there is a good chance of reaching a deal with Iran, as the US paused latest strikes that were launched after disagreements over navigation in the Strait of Hormuz.

The exchange of attacks came despite a ceasefire and a memorandum of understanding to pursue talks for a final deal to end the war that was launched in February.