BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets closed on a positive note on Monday, riding on data showing an improvement in the manufacturing activity in the major economies of the region in the month of January.
Slightly easing concerns about U.S.-Iran friction after U.S. President Donald Trump said he was hopeful of agreeing a deal with Iran helped as well in lifting sentiment.
Investors looked ahead to the European Central Bank's monetary policy announcement, due on Thursday.
The pan European Stoxx 600 climbed 1.03%. France's CAC 40 gained 0.67%, while the U.K.'s FTSE 100 and Germany's DAX moved up 1.15% and 1.05%, respectively. Switzerland's SMI ended 1.67% up.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Netherlands, Portugal, Spain and Sweden ended with sharp to moderate gains.
Iceland and Poland edged up marginally, while Norway, Russia and Turkiye closed weak.
In the UK market, JD Sports Fashion climbed more than 6% and Intercontinental Hotels Group gained 4.15%. IAG, AstraZeneca, Beazley, Ashtead Group, Natwest Group, Compass Group, Easyjet, Barclays, GSK, Aviva, Airtel Africa, Howden Joinery, Standard Chartered, IMI and Lloyds Banking Group moved up 2.3%-4%.
Endeavour Mining, BAE Systems and Autotrader Group declined sharply. Fresnillo, Melrose Industries and Experian also closed weak.
In the German market, Siemens Energy, Commerzbank, SAP, Deutsche Telekom and Hannover Rueck gained 2%-2.6%.
Allianz, BASF, Continental, Siemens, Fresenius, Heidelberg Materials, Gea Group, Mercedes-Benz and Daimler Truck Holding moved up 1%-1.8%.
Rheinmetall dropped about 2.7%. Beiersdorf, Qiagen, Symrise and Brenntag also ended notably lower.
In the French market, Danone climbed 4.3%. ArcelorMittal moved up nearly 4%. TP, Accor, Publicis Groupe, Carrefour, Capgemini, Schneider Electric, Societe Generale and Bouygues gained 2 to 3.1%.
Sanofi moved up 1.8% after the pharma major's genetic disorder drug showed promise in a late-stage trial.
Orange, Saint-Gobain, Stellantis, AXA, BNP Paribas and Bureau Veritas also closed notably higher.
Data from Destats showed German's retail sales rose 0.1% on a monthly basis in December, reversing November's 0.5% drop. Sales were forecast to grow 0.1%. On a yearly basis, retail sales posted an annual growth of 1.5% compared to an increase of 1.3% in November.
France's HCOB Manufacturing PMI rose to a 43-month high of 51.2 in January 2026 from 50.7 in December. The reading was slightly above the flash estimate of 51.0.
The euro area manufacturing activity shrank at a slower pace in January as production returned to growth, final survey results from S&P Global showed. The final HCOB manufacturing Purchasing Managers' Index rose to 49.5 in January from a nine-month low of 48.8 in December. The flash reading was 49.4.
Germany's manufacturing activity continued to contract for 43 straight months in January. However, the final factory PMI rose to a three-month high of 49.1 in January from 47.0 in December as output returned to growth after a brief contraction in December. The initial PMI score for January was 48.7.
Final data from S&P Global showed U.K.'s manufacturing Purchasing Managers' Index rose to a 17-month high of 51.8 in January from 50.6 in December and exceeded the earlier flash estimate of 51.6.
Data from the Nationwide Building Society showed UK house price growth accelerated in January as uncertainty around the budget faded.
House prices rose at a pace of 1% on a yearly basis in January after climbing 0.6% in December. This was faster than economists' forecast of 0.7%.
Month-on-month, house prices moved up 0.3%, in line with expectations, and in contrast to the 0.4% fall in December.
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