European Stock Markets Extend Gains

European stock markets continued their upward trajectory on Monday, with Germany's DAX leading the charge by soaring more than 2.7%. This surge comes as the latest data reveals a drop in euro area inflation to 2.4% in February, alongside a slight recovery in manufacturing activity, despite the sector's overall contraction.

Defense Sector Sees Uptick

Amid these developments, defense companies experienced a notable increase in their stock prices. This uptick follows European leaders' emphasis on the necessity to enhance the continent's defense spending, signaling a potential shift in the sector's outlook.

Market Movements and Currency Fluctuations

By 1:46 pm CET, the DAX had jumped by 2.79%, with the Euro Stoxx 50 rising by 1.37%. Similarly, the CAC 40 and FTSE 100 saw increases of 1.49% and 0.89%, respectively. Concurrently, the euro strengthened against the dollar and the pound, trading 0.93% higher against the former and gaining 0.16% against the latter.