Europe close: Stocks keep climbing
By Alexander Bueso
Date: Monday 17 Feb 2025
(Sharecast News) - European shares continued climbing on Monday as the rift between Europe and the US over the future of Ukraine boosted shares in weapons makers.
The pan-regional Stoxx 600 index was up 0.54% at 555.42 points, with all the major bourses higher alongside.
Traders had been expecting a calm day of trading with US financial markets closed on Monday for the Presidents Day holiday.
French President Emmanuel Macron convened an emergency meeting in Paris with fellow continental leaders to formulate a response to US President Donald Trump's proposals for talks with Russia to end the war.
UK Prime Minister Keir Starmer said he would be prepared to send UK troops to Ukraine to help maintain peace once any deal with Russia was finally struck. Trump last week said US forces would not undertake any peacekeeping duties and many European leaders now fear an emboldened Russia would take the opportunity to attack neighbouring states.
"Investors are keeping a close eye on US-led peace talks for the Ukraine war, especially since EU and Ukrainian officials were excluded from the discussions. On top of that, President Trump's threat to impose tariffs on European car imports starting April 2 is adding to the uncertainty, leaving traders cautious about the broader market outlook," said Hargreaves Lansdown analyst Matt Britzman.
Shared in arms makers were sharply higher on the back of demands by Trump that NATO members ramp up military spending. Rheinmetall, Saab, BAE, Leonardo, Dassault, Qinetiq and Thales were all beneficiaries of geopolitical tensions.
Bank stocks were also higher on rising bond yields.
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