Traders work on the floor of the New York Stock Exchange (NYSE) on Monday, March 9, 2026 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
LONDON — European stock markets closed higher on Monday, even as investors struggled with new evidence of further escalation in the Iran war and deteriorating business confidence.
The pan-European Stoxx 600 index rose 0.8% after trimming earlier losses, with most sectors gaining except for technology and travel.
The FTSE 100 ended the day up 1.6%, supported by mining and energy stocks, while Germany’s DAX rose 0.85%.
European stocks rose despite new data showing economic confidence has deteriorated following the Iran conflict.
The European Commission announced on Monday that its measures of economic sentiment and employment expectations fell in March. Meanwhile, DG ECFIN’s preliminary reading on consumer confidence “fell sharply” in both the EU and the euro area.
In corporate news, Orsted The stock rose 7% after Bank of America raised its price target. The beleaguered renewable energy company has endured a tough year in which President Donald Trump tried to ban Orsted’s major offshore wind project, but BofA upgraded Orsted from “neutral” to “buy,” saying the risk-reward balance facing the stock has turned “firmly” in a positive direction.
As traders digested the latest war developments over the weekend, European stock exchanges reversed negative leads set by Asia-Pacific bourses overnight.
US President Donald Trump told the Financial Times on Sunday that he could “take Iranian oil” and seize Iran’s export hub, Kharg Island. Meanwhile, Yemen’s Houthis announced Saturday that they had fired a missile at Israel, marking their first direct involvement in the U.S.-Israel-led war against Iran.
Houthi spokesman Yahya Salih said in a post on X that the group launched a barrage of ballistic missiles at a suspected Israeli stronghold in support of Iran and its Hezbollah allies in Lebanon.
The attack signals a further escalation in the conflict that began with U.S. and Israeli airstrikes on Iranian targets on February 28. Oil prices were rising in early trading in Asia. West Texas Intermediate crude oil futures rose 2.58% to $102.19 per barrel.
G7 finance ministers, energy ministers and central bank governors are scheduled to hold an emergency meeting on Monday. The meeting, which will be held virtually, will be the fourth time the G7 has met at ministerial level since the start of the Iran war.
—CNBC’s Lee Ying Shan, Anniek Bao and Leonie Kidd contributed to this market report.
