European stocks closed up 0.61% after intraday losses of 2.48%

European stock markets fell then rose on Monday. The pan-European Stoxx 600 index initially dropped as much as 2.48%, but later rebounded sharply after U.S. President Trump hinted that tensions with Iran might significantly de-escalate. The Stoxx 600 closed up 0.61% at 576 points. Travel and leisure stocks gained 2.5%; resource stocks reversed their earlier 4% decline to rise 2.6%.

Italy’s Poste Italiane stock plunged 6.9% after the state-controlled postal company announced plans to acquire Telecom Italia with cash and stock, in a deal worth €10.8 billion. Poste Italiane is the largest shareholder of Telecom Italia, which rose 4.7%.

The UK FTSE 100 closed at 9,894 points, down 0.24% or 24 points; Germany’s DAX rose 1.22% or 273 points to 22,653; France’s CAC 40 increased 0.79% or 60 points to 7,726; Italy’s FTSE MIB gained 0.81% or 348 points to 43,189; Spain’s IBEX 35 climbed 1.04% or 174 points to 16,888.

Earlier, Trump posted on social media that the U.S. and Iran had conducted very good and productive talks over the past two days. He instructed the Department of Defense to suspend all military strikes on Iranian oil and energy infrastructure for five days. An Israeli official said that later this week, senior officials from Iran and the U.S. will hold talks in Islamabad, Pakistan.

However, Iran’s Parliament Speaker Mohammad Bagher Qalibaf denied on social media that Tehran was negotiating with the U.S. Meanwhile, Iranian Revolutionary Guard Corps Aerospace Force Commander Moussavi posted that the current fighting would continue until national and ethnic goals are achieved. Iranian Foreign Ministry spokesperson Esmaeil Baghaei stated that during the past 24 days of conflict, Iran had not engaged in any negotiations with the U.S., and Tehran’s stance on the Strait of Hormuz and ending the conflict had not changed.