European Stocks Climb Toward Record Highs on Defense Rally

2026-02-18 08:43 By Joana Ferreira 1 min. read

European equities advanced on Wednesday, edging closer to record levels, buoyed by strong gains in defense shares and investor reaction to reports of a possible leadership change at the European Central Bank.

The Stoxx 50 rose 0.4% to 6,050, while the broader Stoxx 600 gained around 0.5% to 625.

Defense stocks jumped more than 2%, led by a nearly 6% surge in BAE Systems after the company reported a stronger-than-expected rise in full-year operating profit.

Sentiment in the sector was also supported by reports that Germany is considering taking a minority stake in KNDS ahead of its planned listing this year.

Meanwhile, the Financial Times reported that Christine Lagarde could step down as ECB president before France’s 2027 presidential election.

Elsewhere, Carrefour shares fell 5% after the retailer posted a drop in operating profit.

Investors also looked ahead to the release of minutes from the Federal Reserve for further signals on the US monetary policy outlook.



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European Stocks Climb Toward Record Highs on Defense Rally
European equities advanced on Wednesday, edging closer to record levels, buoyed by strong gains in defense shares and investor reaction to reports of a possible leadership change at the European Central Bank. The Stoxx 50 rose 0.4% to 6,050, while the broader Stoxx 600 gained around 0.5% to 625. Defense stocks jumped more than 2%, led by a nearly 6% surge in BAE Systems after the company reported a stronger-than-expected rise in full-year operating profit. Sentiment in the sector was also supported by reports that Germany is considering taking a minority stake in KNDS ahead of its planned listing this year. Meanwhile, the Financial Times reported that Christine Lagarde could step down as ECB president before France’s 2027 presidential election. Elsewhere, Carrefour shares fell 5% after the retailer posted a drop in operating profit. Investors also looked ahead to the release of minutes from the Federal Reserve for further signals on the US monetary policy outlook.
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