Source: Sharecast
Nevertheless, upside was tempered by losses in Zurich – with Swiss stocks weighed down by tariff concerns.
At the close, the benchmark Stoxx 600 was up 0.90% at 540.60, while the DAX advanced 1.42% to 23,757.69, the CAC 40 was 1.14% higher at 7,632.01 and the IBEX 35 surged 1.84% to 14,386.10.
Switzerland's SMI benchmark, on the other hand, closed in the red, down 0.15% at 11,818.63, as traders assessed the impact of Donald Trump's decision to slap the country with a 39% tariff, hitting names like luxury goods maker Richemont and logistics heavyweight Kuehne & Nagel.
Banking giant UBS was also weighing on the market in Zurich following the news that it will pay $300m to settle obligations Credit Suisse had to pay to the US Department of Justice, related to mortgages sold in the run-up to the 2008 financial crash. Credit Suisse was purchased by UBS in 2023.
However, Swiss stocks later pared losses after it said it would look to offer the US a more "attractive offer" in an effort to avoid Trump's heightened tariff rate. The Federal Council stated it had opted to continue negotiations beyond the current 7 August deadline, if necessary, and that it was not looking at taking any countermeasures at present.
Meanwhile, data out on Monday from the Swiss Federal Statistical Office revealed that inflation rose more than expected in July. The year-on-year change in the consumer price index was a five-month high of 0.2%; economists had expected the rate to hold steady at 0.1%.
Also in focus, European banking stocks got a lift on news that a Supreme Court had decided to rule in favour of motor finance companies over commissions paid to car dealers, with the likes of Commerzbank, Deutsche Bank, Credit Agricole and Societe Generale all trading higher. The industry had been braced to pay out billions in compensation to customers.
Reporting by Iain Gilbert at Sharecast.com