Defense Stocks Lead STOXX 600 Surge Amid ECB Speculation

The STOXX 600 index rose on Wednesday, propelled by defense stocks after BAE Systems reported strong earnings. Investors also eyed potential leadership changes at the European Central Bank. The broader market remained stable, with notable movements including Carrefour's profit decline and Straumann's optimistic growth forecast.

The STOXX 600 index saw gains on Wednesday, primarily driven by a surge in defense stocks following impressive earnings from the UK's BAE Systems. Investors are closely monitoring the potential leadership shifts at the European Central Bank amid these developments.

As of 0813 GMT, the pan-European index increased by 0.4% to 624.15 points. The defense sector was a standout, climbing 2.2% with BAE Systems shares jumping nearly 6% due to a significant rise in full-year operating profits and a record £83.6 billion order backlog.

Additionally, reports suggest Germany is considering acquiring a minority stake in KNDS, boosting the broader sector. In other market news, Carrefour reported a decline in operating profits, affecting its shares negatively, while Straumann saw a substantial 6.2% share increase after promising sales growth predictions for 2026.

(With inputs from agencies.)