European stocks rise on Iran deal; Dax hits new record high

Investing.com - European stocks were higher on Monday, as risk sentiment was boosted by the announcement of a historic deal over Iran's nuclear program.

During European morning trade, the EURO STOXX 50 climbed 0.51%, France’s CAC 40 advanced 0.44%, while Germany’s DAX 30 gained 0.66% and hit a new all-time high of 9,279.50 points.

Weekend talks among the U.S., Russia, China, Britain, Germany, France and Iran ended in agreement on a "first step deal” that is meant to limit advancements in Iran's nuclear program in exchange for easing economic sanctions against Tehran.

In the euro zone, European Central Bank board member Benoit Coeure said low levels of inflation in the euro zone were likely to continue in the short term, but were unlikely to progress to disinflation because the economy is stabilizing.

Markets were also focusing on developments in Italy, as Silvio Berlusconi was to face a Senate vote on Wednesday on whether he should be expelled from politics for a conviction for tax fraud received earlier this year.

Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale rose 0.18% and 0.70%, while Germany's Deutsche Bank climbed 0.47%.

Among peripheral lenders, Spanish banks Banco Santander and BBVA gained 0.55% and 1.03% respectively, while Italy's Intesa Sanpaolo and Unicredit advanced 0.20% and 0.60%.

Elsewhere, PSA Peugeot Citroen surged 4.20% amid reports the company's chief executive officer Philippe Varin plans to step down next year.

Orange also gained ground, up 0.86%, as the French phone company was expected to announce the sale of its Dominican Republic unit to Altice as soon as this week.

In London, FTSE 100 climbed 0.46%, as U.K. lenders tracked their European counterparts higher.

Shares in Lloyds Banking edged up 0.07% and Barclays added 0.29%, while HSBC Holdings and the Royal Bank of Scotland rose 0.36% and 0.60% respectively.

IAG, which owns British Airways as well as Spain's Iberia and Vueling, was the top gainer on the index, rallying 3.16%, after it raised its 2015 operating profit goal to EUR1.8 billion from EUR1.6 billion.

Meanwhile, mining stocks were mixed. Glencore Xstrata advanced 0.69% and Rio Tinto climbed 0.53%, while Vedanta Resources tumbled 0.93% and Randgold Resources plunged 2.94%.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.39% rise, S&P 500 futures signaled a 0.34% gain, while the Nasdaq 100 futures indicated a 0.40% increase.

Later in the day, the U.S. was to release private sector data on pending home sales.