European stock markets closed higher on Monday, buoyed by a series of mixed economic data and geopolitical developments.
Investors balanced optimism over corporate gains and new diplomatic initiatives with cautious sentiment surrounding EU sanctions on Russia and slowing industrial activity.
European markets close higher despite mixed economic data
Major European indices finished in positive territory as traders reacted to fresh economic reports from the region.
Germany’s producer prices fell by 1.7% in September, marking another sign of easing inflationary pressures in Europe’s largest economy.
Meanwhile, Eurozone construction output slipped by 0.1% in August, suggesting mild weakness in the sector.
Despite the mixed data, investor sentiment remained upbeat.
Germany’s DAX index rose 1.80%, driven by strong performances in industrial and defense stocks.
Rheinmetall, a leading defense contractor, led the gains with a 5.90% jump.
The Euro Stoxx 50, the region’s benchmark for blue-chip stocks, advanced 1.31%, while France’s CAC 40 added 0.39%, supported by a 4.83% rise in Kering shares.
The FTSE 100 in London gained 0.52%, with Polar Capital Technology Trust climbing 2.56%.
On the currency front, both the euro and British pound traded flat against the US dollar at $1.16617 and $1.34242, respectively, as of 5:34 p.m. CET.
EU prepares next round of sanctions against Russia
The European Union signaled that it will continue tightening sanctions on Russia, even as the bloc moves toward adopting its 19th package later this week.
Speaking after the Foreign Affairs Council meeting in Luxembourg, EU High Representative for Foreign Affairs and Security Policy Kaja Kallas emphasized that more measures are forthcoming.
“After the 19th package of sanctions, we should work on the next package. It will not be the last,” she told reporters.
Kallas noted that ministers supported a “robust EU-wide approach against the shadow fleet,” referring to vessels that help Russia bypass oil export restrictions.
She also echoed US President Donald Trump’s recent call to halt European purchases of Russian oil and gas, reiterating the bloc’s commitment to cutting Moscow’s war financing.
TKMS surges 35% on Frankfurt debut after ThyssenKrupp spinoff
Shares of ThyssenKrupp Marine Systems (TKMS) soared on their first day of trading on the Frankfurt Stock Exchange, following the company’s separation from ThyssenKrupp AG.
The submarine manufacturer began trading at €60 per share, giving it an initial valuation of about €3.8 billion.
By close, TKMS shares had surged 35.17% to €81.1.
In contrast, ThyssenKrupp’s stock dropped 19.4% to €9.72 as investors shifted focus to the newly listed defense and shipbuilding company.
EU and India sign strategic cooperation agenda
In a major diplomatic move, the Council of the European Union adopted new conclusions on a strategic EU-India agenda, designed to strengthen collaboration across trade, technology, security, and sustainable development.
The plan, backed by a Joint Communication from the European Commission and High Representative Kaja Kallas, aims to finalize a free trade agreement with India by year-end.
The Council also endorsed deeper security and defense cooperation, emphasizing both sides’ commitment to multilateralism and a rules-based international order amid growing geopolitical tensions.
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