European Stocks Up In Positive Territory In Cautious Trade; Defense Stocks In Demand

(RTTNews) - European stocks are up in positive territory Monday afternoon, thanks largely to some strong buying in defense stocks as leaders of European countries meet in Paris for talks on Ukraine and to ramp up security in the European region.

Amid rising tensions between the U.S. and Europe with regard to the situation in Ukraine, European leaders are set to hold an emergency meeting today. The move follows an announcement from Trump administration that it was opening talks with Russia on ending the war without a European presence.

The meeting has been convened following the Trump administration looking to negotiate peace Russia-Ukraine peace talks without involving Europe.

Investors are also continuing to asses the potential impact of the Trump administration's trade and economic policies.

Apart from defense stocks, shares from the financial sector are finding support.

The pan European Stoxx 600 is up 0.45% at 554.86, the U.K.'s FTSE 100 is higher by about 0.25% at 8,753.23, Germany's DAX is advancing nearly 1% at 22,701.55 and France's CAC 40 is up 0.1% at 8,185.65, while Switzerland's SMI is gaining 0.31% at 12,858.50.

In the UK market, defence firm BAE Systems' shares are rising nearly 7%. Multi-national aero spacec and defence company Rolls-Royce Holdings is gaining 1.5%.

Barclays Group and Natwest Group are up 3.7% and 3.5%, respectively. HSBC Holdings is gaining about 1.3%, while Standard Chartered is up 0.8%.

Schroders is climbing up 3.4%. Coca-Cola HBC, Prudential, Hiscox, Reckitt Benckiser, Admiral Group, Easyjet, Haleon, Anglo American Plc, and Melrose Industries are up 1 to 1.5%.

Spirax-Sarco Engineering is declining 2.5%. Segro is down by about 2.1%, while Endeavour Mining, GSK, Barratt Redrow, Airtel Africa, Fresnillo, Howden Joinery, Croda International and British American Tobacco are down 1 to 2%.

In the German market, shares of arms manufacturer Rheinmetall is soaring nearly 18%, contributing substantially to market's rise. The stock is up amid reports the European leaders are considering a new defense spending package to assist Ukraine. Any big jump in Europe's defense budget is a positive Rheinmetall, which has already been seeing a surge in military orders.

Siemens Energy is gaining 4.5%, while Deutsche Bank and Munich RE are up 2.5% and 2.1%, respectively.

Hannover Rueck, Allianz, MTU Aero Engines, Porsche, BMW and Zalando are up 1 to 1.8%.

Sartorius and Vonovia are declining 2.2% and 2.1%, respectively. Puma is down nearly 1%, while Merck and HeidelbergCement are modestly lower.

In Paris, Thales is suring nearly 6% inline with defense stocks across Europe, on signs of higher military spending.

STMicroElectronics is gaining 2.1%, while Safran, Unibail Rodamco, ArcelorMittal, Societe Generale, Airbus Group and Renault are up 1 to 1.8%.

Vivendi is down 2.7%, LVMH is declining 1.7% and Teleperformance is down by about 1.6%.

Data from Eurostat showed the Eurozone's trade surplus narrowed to Euro 15.5 billion in December 2024 from Euro 16.4 billion in the previous year. Imports rose by 3.8% from the previous year to Euro 211 billion and exports increased by a softer 3.1% to Euro 226.5 billion.