European Defense Stocks Surge Amid Ukraine Summit Calls

European shares experienced a rise, particularly in defense stocks, following calls for an emergency summit on the Ukraine conflict. This surge was driven by increased U.S. military spending calls. Notably, BAE Systems, Hensoldt, Renk, and Rheinmetall saw significant stock gains. Upcoming political events and economic data releases in Europe also influenced market dynamics.

European markets saw a notable rise on Monday, led by gains in defense-related stocks. This uptick followed calls from top political leaders for an urgent summit to address the ongoing Ukraine war. The growing pressure from the U.S. to ramp up military spending has significantly influenced these developments.

The pan-European STOXX 600 index observed a 0.2% increase as of 0815 GMT, marking its longest streak of weekly gains since March 2024 as of last Friday. Europe's aerospace and defense sectors soared, with a 2.5% increase in their index.

French President Emmanuel Macron is scheduled to host a summit focused on the Ukraine situation, highlighting the divergence in opinions regarding Europe's role in peace talks. In market movements, Britain's BAE Systems saw a 5.1% rise, while Hensoldt and Renk experienced gains of 7.1% and 11.2%, respectively. Moreover, German arms manufacturer Rheinmetall's shares surged by 10.7%, though U.S. markets remained closed for Presidents Day. This week anticipates key economic data releases and a crucial German national election set for February 23.

(With inputs from agencies.)