2017.09.1821:08:00UTC+00European Markets Higher as Oil Prices Gain, Manufacturers Climb

European stocks finished higher on Monday, as global investors turned their interest on riskier assets amid easing geopolitical tensions.

The pan-European Stoxx 600 advanced 0.33 percent, with most sectors and major bourses in the green.

Portugal stocks outperformed after the eurozone country returned to an investment grade rating after over five years. The country's PSI 20 index climbed over 1.5 percent, poised for its largest one-day gain since mid-July.

Europe's banking index contributed the most to lifting the overall index, with a 0.6 percent gain. Spain's Banco de Sabadell climbed one percent while Italy's UniCredit also gained.

Among the largest advancers on the STOXX were Telecom Italia, rising 4.7 percent as speculation increased over how the Italian government plans to end its argument with Vivendi, the largest shareholder in the Italian company. The French conglomerate fell 0.4 percent.

BAE Systems led advancers on London's FTSE 100 Index. The defense firm climbed 2.4 percent after Britain's defense secretary said that the British government had agreed with the Qatari Defence Minister on the purchase of 24 Typhoon aircraft by Qatar.

Engineering firm GKN climbed 2.2 percent, car insurance provider Admiral Group rose 1.9 percent while high street bank HSBC Holdings was up 1.4 percent.

Oil prices were higher in recent trade with West Texas Intermediate crude oil futures for delivery in November up by 0.7 percent and Brent crude rising 0.3 percent.

French utility company EDF jumped to the top of the benchmark after Goldman Sachs increased its stock recommendation to “buy” from “neutral”. The firm rose nearly two percent on the news.