European Markets Surge Amid Bank and Defence Stock Rally

European shares gained nearly 1% on Monday, buoyed by strong performances in banking and defence sectors as investors assessed corporate earnings. The STOXX 600 index rose 0.9%, with banks and the aerospace & defence index both showing significant rebounds. Key movements included Kering's and Holcim's stock growth.

European shares saw a significant gain of nearly 1% on Monday. This increase was primarily driven by strong performances in the banking and defence sectors, as investors evaluated corporate earnings and sector momentum amidst macroeconomic signals.

The STOXX 600 index rose 0.9% to 571.05 points by 0750 GMT. European banks experienced a 1.6% uptick, recovering from a previous 2.5% decline caused by concerns over credit stress among U.S. regional lenders. The aerospace & defence index also climbed 2.1% as the sector rebounded from news of a planned summit on the Ukraine conflict.

Key stock movements included Saab's 3.1% rise following a Spanish radar contract, and Kering's 4.2% jump after selling its beauty business to L'Oreal for 4 billion euros. Additionally, Holcim increased 1.4% after acquiring Xella for 1.85 billion euros, while Forvia's shares fell 6% due to a 3.7% sales drop. German producer prices also declined more than expected in September.

(With inputs from agencies.)