BRUSSELS (dpa-AFX) - European stocks are broadly higher on Monday, led by gains in the defense sector, amid geopolitical tensions. While there appears to be no prospect of peace in Ukraine, Israel and Hamas are accusing one another of violating the Gaza ceasefire.
Easing concerns about the health of the US banking sector, and expectations of improved trade relations between China and the U.S. contribute to the positive mood in the markets.
US President Donald Trump sought to ease trade tensions, saying the much higher tariffs he had threatened to impose on Chinese imports wouldn't be sustainable. A new round of US-China trade talks are also set for this week.
Investors are also reacting to a spate of news on the corporate front.
Among the major markets in the region, Germany and the U.K. are faring well, while the French market is somewhat flat.
The U.K.'s FTSE 100 was up nearly 0.5% at 9,398.30. Germany's DAX was stronger by 284.15 points or 1.2% at 24,138.56, while France's CAC 40 was down slightly at 8,169.73. The pan European Stoxx 600 was up 3.61 points or 0.63% at 569.85
Babcock International, up 3%, is the biggest gainer in the FTSE 100 index. Prudential, Airtel Africa, St. James's Place and Rolls-Royce Holdings are gaining 2 to 2.5%.
Melrose Industries, Weir Group, Endeavour Mining, BAE Systems and Smiths Group are up 1.5 to 1.8%.
Among the losers, Pearson is down 2.7%. WPP, Persimmon, Barratt Redrow, Easyjet, Metlen Energy & Metals, Mondia, Berkeley Group Holdings and Marks & Spencer are down 1 to 2%.
In the German market, Rheinmetall is rising 5.7%. Infineon Technologies, Heidelberg Materials, Siemens Energy, SAP, Siemens, Daimler Truck Holding and Deutsche Bank are up 1.3 to 2.5%.
Merck, Volkswagen, Zalando, Symrise, Vonovia and Mercedes-Benz are weak.
In the French market, Kering is gaining 3.75% after the company agreed to sell its beauty division to L'Oréal for €4 billion. L'Oreal shares are modestly higher.
Thales is up 3.6% Safran is gaining nearly 3%. STMicroElectronics, Legrand, Accor and Eurofins Scientific are up 1 to 2%.
Airbus is gaining more than 1% after the company recieved an order for 30 aircraft from India's IndiGo.
BNP Paribas is plunging 9% after a US jury held the bank responsible for helping to sustain Sudan's brutal regime under deposed leader Omar al-Bashir. The panel awarded three plaintiffs more than $20 million in damages.
Teleperformance is down 2.5%, while Credit Agricole and Societe Generale are lower by 1.4% and 1.3%, respectively.
In economic news, data from Destatis showed Germany's producer prices decreased 1.7% year-on-year in September, following a 2.2% drop in August. Prices have been falling since March.
Month-on-month, producer prices slid 0.1%, while prices were expected to climb 0.1%. However, this was slower than the 0.5% decrease posted in August.
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