European Shares, Euro Rise As Defence Stocks Surge
European stocks climbed on 3 March, with the STOXX 600 up 1% on the day and defence shares leading the way. The aerospace and defence index rose 6.5% following European leaders’ commitment to increased defence spending at a Ukraine peace summit hosted by UK Prime Minister Keir Starmer.
The German blue-chip index also gained 0.9%, bolstered by reports of a potential defence fund. Meanwhile, the euro rose almost 1% to $1.047, having fallen as much as 0.4% at one point on 28 February after US-Ukraine talks faltered.
The increase follows a decline in European stocks on Thursday, with carmakers leading the losses after the Trump administration warned of imposing 25% tariffs on EU goods.
Focus now shifts to the European Central Bank’s upcoming meeting—where a further rate cut is predicted—and ongoing global trade tensions after US tariffs against Canada, Mexico and China went into effect on 4 March.
