European Stocks Near Record Highs Amid Defense Spending Boost

European shares approached record highs on Monday, March 3, driven by a surge in defense stocks. This followed an agreement among European leaders to increase defense spending and formulate a Ukraine peace plan for presentation to the United States. The pan-European STOXX 600 index rose by 0.4% as of 0811 GMT, continuing a ten-week streak of gains. The European aerospace and defense index experienced a surge of over 6%, reaching a record high. Rheinmetall shares increased by 17.4%, BAE Systems shares rose by 11.6%, and Leonardo shares saw a 15.1% increase. A report indicated that parties involved in forming Germany's new government were considering establishing a defense fund, further boosting the market. The German blue-chip index increased by 0.9%. The European Central Bank's upcoming policy meeting is anticipated, with attention focused on the bank's statements amidst uncertainty following U.S. tariff plans on the European Union.