16.12.202508:47:37UTC+00European Stocks Slip, Defense Sector Weighs

On Tuesday, European stocks experienced a decline, with the STOXX 50 and the broader STOXX 600 dropping by 0.3% and 0.2%, respectively, following gains in the previous trading session. The defense sector faced downward pressure amid ongoing Russia-Ukraine peace negotiations. U.S. President Trump noted on Monday that recent discussions with European leaders marked significant progress towards resolving the conflict, stating that negotiators were "closer now than we have ever been" to achieving peace. This sentiment impacted prominent defense companies, leading to declines in shares of Rheinmetall (-3.5%), BAE Systems (-2.3%), Leonardo (-4.1%), and Thales (-2.3%). Additionally, technology sector giants also contributed to the downturn, with ASML Holding experiencing a 1.7% loss and SAP falling by 1.2%. Conversely, LVMH performed well, seeing its shares rise by 1.3%. Meanwhile, the latest flash PMI data for the Euro Area indicated a mixed economic outlook, with private-sector activity underperforming in Germany and a sharper-than-anticipated slowdown in France's services sector.