European shares soared to record levels on Monday, driven by defence stocks and rising hopes for a peace settlement in Ukraine. The pan-European STOXX 600 index jumped as high as 0.4% to reach new peaks, with the defence and aerospace sector surging over 3%. Analysts expect strong earnings growth in the industry due to increased defence budgets to address new security needs.
French President Emmanuel Macron is hosting an emergency summit on Ukraine, amid growing US calls for boosting military spending for security. Investors are cautious about Russia-Ukraine talks and tariff news, with some warning of potential uncertainties. The European Commission is also exploring import limits on certain foods to protect its farmers.
In other markets, Chinese stocks rose slightly, while Hong Kong equities retreated from recent highs. Tokyo’s Nikkei steadied, driven by strong economic growth in Japan, while South Korean and Taiwanese shares gained 0.6% and 1.5%, respectively.
Commodity prices were largely unchanged, with gold falling from Friday’s record highs at $2,898 an ounce. Oil producer group OPEC+ is considering delaying a series of monthly supply increases due to US pressure to lower prices.
Source: https://www.reuters.com/markets/asia/global-markets-wrapup-1-2025-02-17