European markets opened slightly higher on Monday as investors digested key insights from the Munich Security Conference, highlighting both opportunities and uncertainties for the region. The pan-European Stoxx 600 index rose 0.2% by 8:45 a.m. in London, with most major bourses and sectors showing positive early gains. Analysts note that the cautious optimism reflects investors balancing economic signals with rising geopolitical concerns.
Geopolitical issues dominated discussions at the conference, where European leaders emphasized the need for stronger defense spending to accelerate the continent’s strategic autonomy. Ideas such as a shared nuclear shield were debated, reflecting concerns over rising tensions in Eastern Europe. German Chancellor Friedrich Merz highlighted a “deep divide” in the transatlantic partnership, noting that the post-World War Two rules-based order “no longer exists,” despite conciliatory remarks from U.S. Secretary of State Marco Rubio.
Ukraine’s President Volodymyr Zelenskyy also addressed the conference, signaling his country’s intention to join the European Union by 2027. He urged that any peace agreement with Russia include a formal accession timeline, underlining the political and economic stakes tied to Europe’s security and integration policies. These developments continue to influence investor sentiment, particularly in sectors sensitive to defense and geopolitical stability.
On the corporate front, U.K. lender NatWest Group led early gains, climbing 3.6% after launching a £750 million ($1.02 billion) share buyback program. Conversely, European mining stocks experienced notable declines. Rio Tinto dropped nearly 2% following a fatal incident at its Simandou iron-ore mine in Guinea, while BHP Group, Glencore, Fresnillo, and Anglo American all retreated, dragging the FTSE Industrial Metals and Mining Index down 1.2%. Market watchers anticipate that these movements will set the tone for sector-specific earnings updates later this week.
Looking beyond Europe, Japan’s Nikkei rose 0.2% despite slower-than-expected economic growth, while trading in China, South Korea, and Taiwan remained closed for the Lunar New Year holiday. U.S. markets were also closed on Monday for Presidents’ Day, leaving global investors closely monitoring European developments. Analysts suggest that the combination of geopolitical signals and corporate updates will be the primary driver of European market activity in the coming days.
source: cnbc