The STOXX 600 ended lower this Monday (1st), according to industrial actions, led by Airbus, and defense weighed heavily on the pan-European index, which started the new month on a cautious note following November’s gains.
The STOXX 600 closed in drop of 0.20%, to 575.27 points, after recording its fifth consecutive month of gains in November. Most major regional exchanges also ended lower.
The industrial sector suffered the most, with a drop of 1.2%, influenced by — its worst loss in a single day since April 7th.
The planemaker said it will have a “limited” number of A320 family aircraft. The statement was made following a recall of its jets.
Thales, which makes the flight computers for the affected planes, fell 2.2%.
The defense sector sank 3.2% as investors continued to pull away from the sector amid progress toward a deal to end the war in Ukraine.
U.S. and Ukrainian officials held “productive” discussions on Sunday about a possible peace deal between Russia and Ukraine, with U.S. Secretary of State Marco Rubio expressing cautious optimism despite obstacles to ending the nearly four-year war.
German arms makers Rheinmetall, Hensoldt and Renk fell between 2.2% and 4.7%, putting heavy pressure on the STOXX 600. The shares dragged Germany’s benchmark index down by around 1%.
“Maybe it’s a little less about the outlook for Russia and Ukraine, which remain very uncertain, and maybe a little more about investors looking at sectors that have performed well in the year and perhaps taking some profits,” said Richard Flax, chief investment officer at Moneyfarm.
Conversely, the luxury sector across the region jumped 1.2% and outperformed its peers, as Deutsche Bank saw the sector well positioned to accelerate growth throughout 2026.
In LONDON, the Financial Times index fell 0.18%, to 9,702.53 points.
In FRANKFURT, the DAX index fell 1.04%, to 23,589.44 points.
In PARIS, the CAC-40 index lost 0.32%, to 8,097.00 points.
In MILAN, the Ftse/Mib index fell by 0.22%, to 43,259.48 points.
In MADRID, the Ibex-35 index registered an increase of 0.11%, at 16,389.00 points.
In LISBON, the PSI20 index depreciated 0.04%, to 8,107.17 points.
