European shares notch broad-based gains; defence stocks lag
European shares climbed on Monday, led by retail and basic resources stocks, with investors bracing for a data-heavy week with a focus on U.S. Federal Reserve Chair Jerome Powell's speech at Jackson Hole for clues on potential rate cuts.
The pan-European STOXX 600 index closed 0.6% higher, touching an over three-week high in broad-based market gains, after having notched its biggest weekly gain in three months.
Having recovered most of the recent lost ground, the benchmark index stood strong above the 500-point mark after slipping below the key level on Aug. 2.
All the major regional bourses such as Germany's, France, Italy and Spain climbed between 0.5% and 1.4%.
Miners rose 2% tracking strength in metal prices, while online fashion marketplace Zalando and British sportswear retailer JD Sports led the charge among retail stocks.
Meanwhile, defence stocks fell after a report that the German finance ministry would not approve additional applications for Ukraine military aid due to budget constraints.
Hensoldt, Renk, BAE Systems, Saab, Thales and Leonardo were down between 0.8% and 5.4%.
«The consolidation phase is going to last for the next few days… It's at that point where indecision creeps in again. It's now back to assessing what's out there and how these factors can impact,» said Daniela Hathorn, senior market analyst at Capital.com. Investors are now gearing up for another week brimming with crucial economic data including euro zone inflation and PMI numbers, alongside the U.S. PMI numbers and weekly
