European Markets Rally on Trade Tensions Easing

Investors breathed a sigh of relief as major European stock indexes closed higher on Monday. The uptick followed the European Union's announcement to postpone its counter-tariffs against the United States by six months, signaling a potential thaw in trade tensions.

Bank of England's Upcoming Decision in Focus

Amid the market optimism, attention now turns to the Bank of England (BoE), which is set to reveal its latest interest rate decision later this week. This move is highly anticipated by investors looking for cues on the UK's economic direction.

Stock Highlights and Currency Movements

The DAX led the charge with a 1.42% increase, buoyed by Commerzbank's 5.03% leap. The Euro Stoxx 50 wasn't far behind, climbing 1.49%, with Santander Banco surging 3.96%. France's CAC 40 and the UK's FTSE 100 also posted gains, with notable performances from Safran and Lloyds, respectively.

On the currency front, the euro dipped slightly against the dollar, while the pound remained steady, reflecting the cautious optimism pervading the markets.