European Stocks Continue Their Gains

European shares rose on Monday after investors pinned their hopes on Ukrainian-Russian diplomatic efforts to end the weeks-long war, while Volkswagen rose after its operating profit doubled.

The pan-European STOXX 600 index rose 1 percent, extending gains made on Friday after Russian President Vladimir Putin signaled a positive turn in talks with Ukraine.

The officials were due to speak again after both sides signaled progress even after Russia attacked a base near the border with Poland and as fighting continued elsewhere.

The auto industry index was the biggest gainer on Monday morning, rising 4 percent, and Volkswagen shares jumping 7.6 percent.

Shares of French electricity company EDF fell 1.4 percent after it warned of problems that could prevent it from achieving its financial targets.