European markets experienced a notable surge on Monday, largely driven by significant movements in defense stocks and strategic financial developments. The absence of major earnings or data releases on the first trading day of the week did not deter market activity. Instead, attention focused on the Renk Group and Anglo American Platinum, while European leaders gathered in Paris for critical discussions regarding U.S.-Russia relations and Europe's defense strategy.
Germany's Renk Group saw a substantial 11% increase during morning trading, capturing investor interest. Simultaneously, Anglo American Platinum announced plans to pay an additional cash dividend of 59 South African rand ($3.21) per share, amounting to a total payout of 15.7 billion rand. This move precedes an upcoming demerger that will see the company maintain a primary listing on the Johannesburg Stock Exchange and a secondary listing in London, with Anglo American retaining a 19.9% stake.
The defense sector also witnessed impressive gains amid regional geopolitical tensions. The Stoxx 600 Aerospace and Defense Index climbed 2% by 9:22 a.m. London time, reaching a record high. Swedish defense manufacturer Saab saw its stock rise by 7.6%, while German arms maker Rheinmetall experienced a 7.5% increase. These developments come as European leaders convene for an emergency summit in Paris, prompted by President Donald Trump's apparent decision to sideline Europe in international discussions.
The emergency summit follows the recent Munich Security Conference, where some officials expressed readiness to enhance Europe's defense spending. This eagerness to ramp up defense budgets is reflected in the market's positive response to defense stocks.
In other market movements, the U.K.'s FTSE 100 index was projected to open slightly lower by one point at 8,718. Despite this minor dip, the overall market sentiment remained optimistic due to the robust performance of defense stocks and strategic corporate actions.