European markets closed higher on Monday as the dollar strength took a breaker and oil prices jumped to their highest level in three weeks on heightened investor expectations that OPEC could reach a deal to cut production.
The pan-European Stoxx 600 ended 0.25 percent higher on Monday after fluctuating for much of the morning session. Sectors were mixed though basic resources outperformed their peers, rising over 2 percent, amid a spike in metal prices.
Meanwhile, the European Central Bank (ECB) president Mario Draghi defended the bank's actions to date and suggested that the ECB must continue with its current level of monetary support in order to help inflation grow.
Draghi told the European Parliament on Monday, "The return of inflation towards our objective still relies on the continuation of the current, unprecedented level of monetary support, in spite of the gradual closing of the output gap."
In France, former President Nikolas Sarkozy conceded defeat in the primaries for the 2017 presidential election. The second round to select the candidate for the ring-wing Les Republicains will be disputed next weekend by Francois Fillon and Alain Juppe.
In Germany, Chancellor Angela Merkel confirmed expectations that she will run for a fourth term in office. Meanwhile, the German economy should slowdown in the last quarter of this year, after a solid performance in the first six months of 2016, the finance ministry said Monday.
Oil was trading at a three-week high on Monday as OPEC members seemed closer to a deal to cut output following comments from Russian President Vladimir Putin. In Europe, oil and gas stocks spiked by more than 3 percent.
Meanwhile in the U.S., the Dow Jones industrial average continued higher as investors anticipated what President-elect Donald Trump's economic policies could mean for the markets.
The Nasdaq composite climbed to reach an all-time high in early trading on Monday and was up 0.57 percent at 11.30am ET. The S&P 500 topped its all-time intraday high of 2,193.81 hit on August 15 as energy stocks traded 2 percent higher.
Essentra, the plastic and packaging components supplier, was at the bottom of the European benchmark, dropping more than 20 percent. The company announced it was cutting its full-year adjusted operating profit on the back of restrictions in the Chinese market.
Rio Tinto announced job cuts Monday in its iron ore division due to "tough market" conditions, helping shares to rise by nearly 1 percent at the close.