European Stocks Edge Higher
European stocks closed slightly higher in the first trading day of September as markets continued to assess he outlook for global rates and geopolitical risks in Europe.
The Eurozone's STOXX added 0.3% to 5,365 and the pan-European STOXX 600 rose 0.2% to 551. The defense sector took the spotlight after European Commission President Ursula von der Leyen said the EU is preparing “pretty precise plans” for potential military deployments to Ukraine as part of post-conflict security guarantees that will have the full backing of US capabilities.
Rheinmetall surged over 3.2%, while Bae Systems, Airbus, Rolls Royce, and Leonardo jumped between 4.5% and 1%. In the meantime, Novo Nordisk advanced 1.8% after reporting that its weight-loss drug Wegovy reduces the risk of heart attack.
Lastly, banks were mostly higher as volatility in fixed-income assets persisted ahead of the confidence vote around the French budget, which stressed yield spreads between Eurozone members.
Source : Trading Economics