European Stocks Close at Record High, Led by Defence Shares.
Defence stocks powered European shares to a record high on Monday, after expectations mounted of higher military spending in the region, and the prospect of a Ukraine peace proposal boosted sentiment. Germany's blue-chip index logged its biggest one-day jump since November 2022, and closed at a record high, alongside Britain's benchmark index. The pan-European STOXX 600 index closed up 1.1%, at a record high, building on 10 straight weeks of gains.
- The recent surge in defence stocks highlights the interconnectedness of economic sentiment with global geopolitics, as investors increasingly tie their bets to military spending and diplomatic tensions.
- What role will the European Central Bank's response to US plans for "reciprocal" tariffs play in shaping market expectations for inflation and interest rates in the coming months?