European markets climbed on Monday, as market sentiment improved across the continent thanks to lower geopolitical tensions

The EURO STOXX 50 advanced 0.58%, France’s CAC 40 gained 0.46%, while Germany’sDAX climbed 0.56% by 03:40 a.m. ET (07:40 GMT).

Markets seemed to have recovered from news late Thursday that North Korea fired a missile over Japan into the Pacific Ocean. It was the peninsula's second missile launch over Japanese territory in just over two weeks.

Pyongyang was expected to be discussed as U.S. President Donald Trump was preparing to address the United Nations for the first time this week.

Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) andSociete Generale (PA:SOGN) gained 0.33% and 0.89%, while Germany's Deutsche Bank(DE:DBKGn) and Commerzbank (DE:CBKG) advanced 0.69% and 0.52%.

Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) climbed 0.62% and 0.79% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) rose 0.54% and 0.72%.

Elsewhere, German automaker Volkswagen AG (DE:VOWG) shares rallied 1.32% after the head of the company's trucks business told a German newspaper that it is a “second mover” in electrified commercial vehicles.

He said Volkswagen had emissions-free alternatives to conventional trucks and buses on offer.

Sodexo (PA:EXHO) added to gains, with shares up 1.10% following news the French food services company completed the sale of Vivabox USA to Lion Equity Partners. Vivabox is a leading provider of products and services to the sample and subscription box industry.

In London, FTSE 100 gained 0.36%, boosted by BAE Systems (LON:BAES), whose shares surged 2.77% after Qatar’s defense minister signed a letter of intent to purchase 24 Typhoon jets from the UK defense group.

GKN (LON:GKN) was also on the upside, with shares advancing 2.33%. The automotive and aerospace components manufacturer made headlines last week when it appointed Kevin Cummings, the head of its aerospace division as successor to chief executive Nigel Stein.

In the financial sector, stocks were broadly higher. Shares in Barclays (LON:BARC) and the Royal Bank of Scotland (LON:RBS) climbed 0.46% and 0.52% respectively, while Lloyds Banking (LON:LLOY) gained 0.60% and HSBC Holdings (LON:HSBA) rallied 1.27%.

Meanwhile, mining stocks were lower on the commodity-heavy index. Glencore (LON:GLEN) dropped 0.65% and Randgold Resources (LON:RRS) retreated 0.99%, while Fresnillo(LON:FRES) tumbled 1.04%.

The FTSE had come under pressure on Friday after Gertjan Vlieghe, an external member of the Bank of England's monetary policy committee, said that interest rates could rise “as early as in the coming months.”

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futurespointed to a 0.27% increase, S&P 500 futures signaled a 0.21% gain, while theNasdaq 100 futures indicated a 0.19% rise.