Apr. 12 at 4:01 PM
STOXX Europe 600 and most European markets closed higher as investors balanced geopolitical risks with hopes for de-escalation, but defense stocks moved sharply in the opposite direction.
Shares of Rheinmetall, Renk Group, Hensoldt, Saab AB, and BAE Systems all fell after signs that Ukraine-Russia negotiations might progress, reducing expectations for sustained military spending.
Meanwhile, broader European equities like CAC 40 and FTSE MIB posted gains, reflecting optimism tied to potential diplomatic developments and easing tensions involving Iran and Lebanon.
Asian markets followed the positive tone, with Nikkei 225 and Kospi advancing on similar geopolitical hopes and economic signals, including planned oil reserve releases from Japan.
At the same time, energy-driven inflation remains a concern. Rising fuel costs linked to Middle East tensions are pushing consumer prices higher in both Europe and the U.S., contributing to ongoing volatility across global markets.
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