European Shares Climb Amid Defence & Trade Policy Dynamics

European shares soared, driven by defence stocks, as leaders called for a summit on the Ukraine war, and the U.S. pushed for increased military spending. Defence industry earnings are expected to rise, while trade tariffs remain a concern. AI enthusiasm also boosts Chinese growth outlook despite mixed stock performances.

European shares reached new heights on Monday, predominantly led by defence stocks, as significant political moves unfolded in the region. The anticipation of increased military budgets in response to the ongoing Ukraine conflict has fueled a notable rise in the defence sector.

French President Emmanuel Macron is set to host an emergency summit about the Ukraine conflict, amidst concerns over European exclusion from peace talks initiated by the U.S. in Saudi Arabia. Meanwhile, European banks saw growth, capitalizing on rising bond yields and market optimism.

Elsewhere, AI advancements have provided a boost to China's economic prospects, drawing positive outlooks from analysts at Goldman Sachs, despite mixed responses from Asian markets. Overall, global economic activity remains dynamic, influenced by policy decisions, trade negotiations, and technological innovations.

(With inputs from agencies.)