European Markets Close Higher

(RTTNews) - European markets closed higher on Monday, supported by gains in defense and healthcare sectors. The undertone was reasonably firm after a U.S. appeals court ruled that many of Donald Trump's tariffs were illegal.

The 7-4 ruling by the U.S. Court of Appeals for the Federal Circuit affirmed a lower court's finding that Trump had exceeded his authority in tapping emergency economic powers to impose wide-ranging duties.

At the same time, the judges allowed the tariffs to stay in place through mid-October, giving Trump time to take the fight to the Supreme Court.

Healthcare stocks found support after Danish pharma company Novo Nordisk's weight-loss drug Wegovy offered better heart-protective benefits than rival treatments from U.S.-based Eli Lilly.

Novo Nodisk said Wegovy cut the risk of heart attack, stroke or death by 57% versus Eli Lilly's rival medicines Mounjaro and Zepbound in a real-world comparison.

The pan European Stoxx 600 gained 0.23%. Germany's DAX climbed 0.57%, while the U.K.'s FTSE 100 and France's CAC 40 edged up 0.1% and 0.05%, respectively. Switzerland's SMI closed 0.09% down.

Among other markets in Europe, Austria, Czech Republic, Denmark, Finland, Greece, Ireland, Iceland, Portugal and Sweden closed higher.

Poland and Russia ended weak, while Belgium, Netherlands, Norway, Spain and Turkiye closed flat.

In the UK market, Endeavour Mining climbed nearly 3.5%. IAG and Rolls-Royce Holdings gained 3% and 2.8%, respectively.

Fresnillo, Babcock International, Tesco, Barclays, Associated British Foods, Diploma, DCC, Natwest Group, Pershing Square Holdings, Unite Group ad Pearson also posted strong gains.

SSE closed more than 3% down. United Utilities, National Grid, BT Group, Severn Trent, 3i Group, Schroders, Rentokil Initial and Glencore lost 1 to 2.5%.

BAE Systems moved up sharply after Norway said it has chosen the United Kingdom as its strategic partner for the acquisition of new frigates. Genuit climbed more than 4% after acquiring Monodraught Topco Limited for £55.6 million.

In the German market, Rheinmetall gained nearly 3.5%. Sartorius, Commerzbank and Qiagen closed up 2.7%, 2.3% and 2.2%, respectively.

MTU Aero Engines, Continental, BMW, Siemens, Deutsche Post and SAP gained 1 to 1.7%.

Puma closed down 2.5%. E.ON, Siemens Energy, Deutsche Boerse, Daimler Truck Holding, Infineon and Bayer also ended notably lower.

In the French market, Teleperformance, Airbus, Renault, Pernod Ricard, Societe Generale, Saint Gobain and Stellantis closed with sharp to moderate gains.

STMicroElectronics ended down 2.6%. Bouygues, Hermes International, Veolia Environment, Carrefour, Accor, Capgemini, Vivendi and Edenred lost 0.8 to 1.4%.

In economic news, the UK manufacturing sector continued to shrink in August on faster declines in new orders and export business, survey results from S&P Global showed.

The factory Purchasing Managers' Index fell to 47.0 in August from a six-month high of 48.0 in July. This was also below the flash estimate of 47.3. A reading below 50.0 indicates contraction.

UK house prices logged a slower pace of growth in August due to stretched affordability, the Nationwide Building Society said. House prices increased 2.1% on a yearly basis in August, slower than the 2.4% rise seen in July.

On a monthly basis, house prices edged down 0.1%, in contrast to the 0.5% increase in the previous month. Prices were forecast to rise 0.1%.

Data published by S&P Global showed the euro area manufacturing activity grew at the fastest pace in more than three years in August driven by a sharp rise in output and the renewed uptick in domestic demand,

The HCOB final manufacturing Purchasing Managers' Index improved to 50.7 in August from 49.8 in July. This was the first expansion in the currency bloc since June 2022. The flash score was 50.5.

The survey showed that operating conditions in Germany broadly stabilized in August. Spain reported strong upturn and France and Italy posted renewed expansions.

Germany's manufacturing sector moved closer to stagnation with production registering the fastest rise in nearly three-and-a-half years in August. The factory PMI advanced to a 38-month high of 49.8 from 49.1 in the previous month but it was slightly below the flash estimate of 49.9.

France's manufacturing activity grew for the first time since January 2023. The HCOB final factory PMI posted 50.4 in August, up from 48.2 in July. The flash estimate for August was 49.9.

Data from Eurostat showed the euro area unemployment rate dropped marginally in July. The jobless rate registered 6.2% in July compared to 6.3% in June. In the same period last year, the unemployment rate was 6.4%.

Eurostat estimated that the number of people out of jobs decreased 170,000 from June to 10.805 million in July. Compared to last year, unemployment fell 161,000.