By Mucahithan Avcioglu
ISTANBUL (AA) - European stock markets gained on Monday, led by defense companies' surge amid plans to rearm Europe and positive financial data.
The annual inflation rate in the euro area dropped to 2.4% in February, according to Eurostat estimates.
The Eurozone Manufacturing PMI, which measures the overall health of eurozone factories, reached a two-year high in February, rising to 47.6 from 46.6 in January.
Defense stocks climbed following talk of boosting defense expenditures across Europe at a summit in London to discuss a new plan for peace in Ukraine.
Stock prices of Germany’s Hensoldt climbed 22.3%, Italy’s Leonardo rose 16%, and Dassault Aviation grew 14.7%.
Sweden’s Saab and France’s Thales were also among the top of Stoxx 600 climbers on Monday.
Rolls-Royce, a giant in defense and commercial aerospace which hit an all-time high last week after reinstating its dividend, also climbed 6.7%.
The pan-European Stoxx 600 grew 1.07% higher with the Stoxx Europe aerospace and defense index rising 8%, its best session in five years.
Germany's DAX 40 index rose 2.64%, or 595.59 points, to 23,147.02, while the UK'S FTSE 100 grew 0.7% — 61.57 points — to 8,871.31.
France's CAC 40 also soared 1.09%, or 88.08 points, to 8,199.71, and Italy's FTSE MIB 30 index gained 1.07% to 39,069.4 in a 414.31-point rise.