French Stocks Rise to Begin March

The FTSE MIB fell by 0.5% to around 38,400 in early trading on Monday, kicking off the week on a negative note.

Investors closely monitor European efforts to draw up a Ukraine peace plan, following a clash between President Volodymyr Zelenskiy and U.S. President Donald Trump last Friday.

U.S. tariffs also remain in focus, with levies on Canadian and Mexican imports set to come into effect on Tuesday, along with an extra 10% duty on Chinese goods.

Among the biggest decliners were Nexi (-1.9%), Prysmian (-1.8%), and Campari (-1.4%).

Utility stocks also struggled, with Enel (-1.4%), Snam (-1.3%), Terna Rete Elettrica Nazionale (-1.5%), and Italgas (-0.9%) trading in the red.

On the other hand, shares of defense company Leonardo surged 10.5%.

Hong Kong stocks rebounded on Monday on positive manufacturing data and expectations from the National People's Congress due to start on Wednesday.

While the rebound covered last week's losses, its amplitude remained moderate as sentiment soured due to trade tensions between China and the U.S. as China plans to impose new levies on U.S. agricultural exports in retaliation to President Donald Trump's plans to impose an additional 10% tariff on Chinese goods, Reuters reported.

The Hang Seng Index rose 0.28%, or 64.95 points, to close at 23,006.27. The Hang Seng China Enterprises Index rose 0.03%, or 2.26 points, to end at 8,419.69.

Data from the National Bureau of Statistics showed a return of expansionary territory in China's manufacturing activity in February. The manufacturing purchasing manager's index expanded to 50.2 in February from a contraction of 49.1 in January following a rise in the new order and production indices.

The Caixin Purchasing Managers' Index also rose to 50.8 points from the previous month's 50.1 points. Composite PMI also climbed 1.0 percentage point to 51.1%, up 1.0 points, indicating the post-Spring Festival acceleration of the recovery and development of China's corporate production and operation activities.

In corporate news, MIXUE Group 2 made a stellar trading debut in Hong Kong Monday morning as its shares soared over 29.4% at the opening bell. At the close, the company's shares had a bid price of HK$289.80 with an asking price of HK$290.00.

The FTSE 100 edged higher on Monday, trading near record levels around 8,830 and outperforming other European markets, driven by strong gains in defense stocks.

BAE Systems surged over 15% to a record high, boosted by expectations of increased European defense spending as leaders pledged more support for Ukraine.

Rolls-Royce also climbed more than 4.5% amid the defense rally.

Prime Minister Keir Starmer, hosting talks on Ukraine, indicated that the UK, France, and other nations are working on a plan to secure peace following any US-brokered ceasefire.

In the energy sector, Shell rose about 1.2% on reports it may sell its chemicals assets in the US and Europe to focus on more profitable areas.

On the downside, Bunzl fell over 6% after reporting flat revenue and modest profit growth, despite announcing a £200 million share buyback.

The DAX rose more than 0.5% to near 22,700 on the first trading session of March as traders focused on geopolitical developments.

Defense stocks led the gains, led by Rheinmetall (17.6%), after European leaders agreed on Sunday to lift defense spending and draw up a peace plan for Europe.

The DAX rose more than 0.5% to near 22,700 on the first trading session of March as traders focused on geopolitical developments.

Defense stocks led the gains, led by Rheinmetall (17.6%), after European leaders agreed on Sunday to lift defense spending and draw up a peace plan for Europe.

In Frankfurt, the DAX Index is gaining 142 points or 0.63 percent on Monday.

Leading the gains are Rheinmetall (13.92%), Airbus (2.40%) and MTU Aero Engines AG (2.04%).

Top losers are Vonovia (-2.14%), Continental (-2.11%) and Deutsche Bank (-2.07%).