European stocks rose on Monday as investors pinned their hopes on diplomatic efforts by Ukraine and Russia to end weeks-long conflict, while shares in Volkswagen surged after the German carmaker doubled its operating profit. The pan-European STOXX 600 index gained 1.0 percent, extending gains from Friday when Russian President Vladimir Putin signaled a positive shift in talks with Ukraine. Russia and Ukraine gave their most upbeat assessments following weekend negotiations, even as Russia attacked a base near the Polish border and fighting raged elsewhere. “No sign yet of hostilities in Ukraine easing, but risk assets are beginning to behave as if most of the negativity is now priced in,” said Ian Williams, economics & strategy research analyst at Peel Hunt. Auto stocks climbed 4.1 percent to lead gains among sectors. Volkswagen AG surged 6.6 percent as higher prices and a more favorable product mix boosted its operating profit. However, China-exposed …