Global Markets | Europe's STOXX 600 rises as defence stocks gain on BAE results; ECB in focus

The STOXX 600 index rose on Wednesday, with defence stocks in the lead following strong earnings from the UK's BAE Systems, ‌while investors ⁠mulled ⁠the outlook for monetary policy amid reports of a leadership change at the European Central Bank.

The pan-European index was up 0.4% at ​624.15 points, as of 0813 GMT, with most regional benchmarks in the black.

The defense sector climbed 2.2%, with BAE ​Systems adding nearly 6% after reporting a ⁠better-than-expected jump in ‌full-year operating profit, as global ​demand swelled ​its order backlog to a record 83.6 billion ⁠pounds ($113.40 billion).


The broader sector also gained after ​a report on Tuesday said Germany was preparing ​to acquire a minority stake in KNDS, the Franco-German maker of the Leopard tank, ahead of its planned listing this year.

Meanwhile, a Financial Times report said Christine Lagarde plans to step down as president of ‌the European Central Bank before the 2027 French presidential elections.

Market reaction across regional assets were ​relatively muted as ​investors were ⁠not anticipating any major policy shifts in the event of personnel change.

Among others, Europe's largest food retailer Carrefour reported a ​decline in operating profit, sending shares down 5%.

Shares of Straumann gained 6.2% after the Swiss dental implant maker forecast 2026 sales growth in the high single-digit percentage range.

($1 = 0.7372 pounds)