European Markets Surge Amid Optimism for Ukraine Peace Deal

European markets witnessed gains on Monday, fueled by hopes of a Ukraine peace deal and pending U.S. inflation data and tariff discussions. The STOXX 600 saw a rise, while German defense stocks fell amid peace deal talks. Orsted and Northern Data faced declines due to sector-specific developments.

European markets continued their upward trajectory on Monday, spurred by optimism regarding a potential peace agreement in Ukraine. Investors eagerly await U.S. inflation details and tariff discussions scheduled for later in the week.

The pan-European STOXX 600 index experienced a 0.3% rise by 0708 GMT, nearing its highest point since July 31. Ukrainian President Volodymyr Zelenskiy garnered diplomatic support from Europe and NATO ahead of a crucial Russia-U.S. summit.

In contrast, the prospect of a peace agreement negatively impacted German defense stocks. Rheinmetall fell by 3.7%, with Renk and Hensoldt also experiencing declines. Meanwhile, Orsted dropped 22% due to a rights issue plan, and Northern Data saw nearly a 3% decrease following Rumble's acquisition interest.

(With inputs from agencies.)