Europe's STOXX 600 rises as defence stocks gain on BAE results; ECB in focus

The STOXX 600 index rose on Wednesday, with defence stocks in the lead following strong earnings from the UK's BAE Systems, while investors mulled the outlook for monetary policy amid reports of a leadership change at the European Central Bank. The pan-European index (.STOXX), opens new tab was up 0.4% at 624.15 points, as of 0813 GMT, with most regional benchmarks in the black. Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here. The defense sector (.SXPARO), opens new tab climbed 2.2%, with BAE Systems (BAES.L), opens new tab adding nearly 6% after reporting a better-than-expected jump in full-year operating profit, as global demand swelled its order backlog to a record 83.6 billion pounds ($113.40 billion). Advertisement · Scroll to continue The broader sector also gained after a report on Tuesday said Germany was preparing to acquire a minority stake in KNDS, the Franco-German maker of the Leopard tank, ahead of its planned listing this year. Meanwhile, a Financial Times report said Christine Lagarde plans to step down as president of the European Central Bank before the 2027 French presidential elections. Market reaction across regional assets were relatively muted as investors were not anticipating any major policy shifts in the event of personnel change. Among others, Europe's largest food retailer Carrefour (CARR.PA), opens new tab reported a decline in operating profit, sending shares down 5%. Advertisement · Scroll to continue Shares of Straumann (STMN.S), opens new tab gained 6.2% after the Swiss dental implant maker forecast 2026 sales growth in the high single-digit percentage range.