European markets closed higher on Monday, boosted by waning geopolitical fears and a continued upturn on Wall Street.
Investors were reassured on Monday by signals that Moscow would not send troops into Ukraine, which looks set to retake the city of Donetsk. Ukrainian military forces have made significant gains that have divided pro-Russia rebel forces.
Regarding Iraq, President Barack Obama said on Saturday that U.S. airstrikes had already destroyed arms that could have been used by Islamic State militants. This boosted U.S. stocks on Monday, even though Obama did warn that there would be no "quick fix" to the crisis.
In stocks news, shares of Banco Popolare closed up 8.2 percent, topping the FTSE MIB. The Italian bank reported stronger-than-expected quarterly results and was upgraded by Exane BNP Paribas to "outperform" from "neutral".
Meanwhile, shares in Bilfinger closed 4.2 percent higher after the builder said it expected a "significantly" stronger second half of 2014.
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