European stocks rise on oil; Brazil-exposed shares fall

European stock markets closed mostly higher on Monday, October 26, 2026, as falling oil prices and diplomatic efforts to ease Iran tensions boosted risk appetite. However, shares of European companies with significant exposure to Brazil fell sharply following President Luiz Inácio Lula da Silva's election victory. The FTSE 100 in London rose 0.72%, the DAX in Frankfurt gained 1.03%, and the CAC 40 in Paris advanced 0.83%. The energy sector climbed 2.9% despite lower oil prices, while investors awaited the European Central Bank's monetary policy decision and monitored France's internal crisis. Brazil-exposed stocks declined, with Santander dropping 3.16%, Telefonica falling 6.58%, and Galp plunging 10.93%. In Frankfurt, Bayer rose about 3% after receiving its first global approval in China for a stroke prevention drug.