European equities saw mixed movement on Monday, following a four-day rally fueled by optimism over potential U.S. interest rate cuts.
The pan-European STOXX 600 edged slightly higher to 511.68, after recording its best weekly performance since May 6.
Germany's DAX declined by 0.1%, while the U.K.'s FTSE 100 slipped by 0.2%. France's CAC 40 remained relatively flat but exhibited a positive trend.
Aerospace and defense sectors experienced a downturn following reports that Germany, the second-largest provider of aid to Ukraine, intends to reduce its military assistance to Kyiv by half in 2025 due to budgetary constraints. Stocks such as BAE Systems, Rolls-Royce Holdings, Rheinmetall, and Saab AB dropped between 2% and 6%.
Online trading platform Plus500 surged by 4.1% after releasing a robust interim report and projecting annual results to exceed market expectations.
In the housing sector, British housebuilder Barratt Developments rose by 0.8% and its competitor Redrow saw a 2.3% increase. Both companies announced in a joint statement their plans to finalize a merger deal later this week.
