European Shares Rise Amid Defence Stock Rally and ECB Decision
European shares closed higher, driven by a strong performance in defence stocks, following a European Central Bank decision to maintain interest rates. The STOXX 600 rose by 0.51%, with significant contributions from BAE Systems and Rolls-Royce. Meanwhile, the ECB maintained its current rates, and the ongoing geopolitical tensions influenced investor choices.
European markets experienced an uplift on Thursday, buoyed by a surge in defence stocks amidst continuing geopolitical tensions and a European Central Bank (ECB) decision to hold interest rates steady. The STOXX 600 index saw a 0.51% rise, closing at 555.13 points.
The defence sector led gains, with BAE Systems climbing 6.3% and Rolls-Royce posting a 2.1% increase, as tensions in Eastern Europe prompted investors to shore up their portfolios. "Investors increasingly consider defence stocks a must-have in these uncertain times," commented Daniel Coatsworth from Moneyfarm.
The ECB's decision to leave rates unchanged was as expected, though it provided no hints on future monetary policy. The Bank adjusted its inflation projections to 1.9% by 2027, slightly below its prior target. Meanwhile, market sentiment was also shaped by hotter-than-expected U.S. consumer price data, with investors maintaining a cautious approach.
Google News