European stocks close higher as energy supply concerns ease

European stock markets closed higher Monday as announcements of an agreement between Ukraine and Russia concerning energy infrastructure eased concerns over energy supplies.

An agreement between the EU and China on hybrid vehicle import quotas and a slight decline in bond yields also supported sentiment.

The benchmark Stoxx Europe 600 index rose 0.65% to 635.65 points, while the euro area’s Euro Stoxx 50 gained 0.45% to 6,201.21.

Germany’s DAX 40 increased 0.76% to 25,277.68, Britain’s FTSE 100 climbed 0.99% to 10,656.28 and France’s CAC 40 advanced 0.38% to 7,832.88.

Italy’s FTSE MIB rose 0.58% to 50,035.

German defense stocks were among the notable gainers, with Rheinmetall shares rising 2.5% to lead advances on the DAX.

Volkswagen shares gained 0.6% despite the German automaker reporting a 14.3% year-on-year decline in third-quarter global deliveries to 1.89 million vehicles.

The company’s shares benefited from easing trade tensions after the EU and China agreed on an annual quota of 350,000 hybrid vehicle imports.

However, Brent crude’s roughly 2% intraday rise toward $107 a barrel and developments in global bond markets limited gains in equities.

Meanwhile, the annual meetings of the International Monetary Fund and World Bank began in Bangkok, Thailand.

IMF Managing Director Kristalina Georgieva said the global economy would continue growing at around 3%, supported by artificial intelligence investment. The fund is due to release its updated global growth forecasts Tuesday.

Investors also looked ahead to third-quarter earnings from major US banks, including JPMorgan, Goldman Sachs, Citigroup and Wells Fargo, scheduled for Tuesday.

The euro fell 0.39% against the dollar to 1.116 as European markets closed.