European markets open higher as investors assess Munich Security Conference

• Major European indices rose in early trading: London's FTSE 100 gained 0.15%, Germany's DAX advanced 0.34%, and France's CAC 40 climbed 0.1%
• European leaders at the Munich Security Conference emphasized the need for increased defense spending and discussed a common nuclear shield to enhance the continent's strategic autonomy
• Japan's economic growth came in at 0.2% annualized for the December quarter, significantly below the expected 1.6%, while U.S. markets remained closed for Presidents' Day

Summary: European Markets Rise Amid Munich Security Conference Focus

Market Performance:

European markets opened higher on Monday, with the pan-European Stoxx 600 gaining 0.4%. London's FTSE 100 rose 0.15% (+43.91 points to 10,446.35), Germany's DAX advanced 0.34%, and France's CAC 40 increased 0.1%. U.S. markets remained closed for Presidents' Day.

Key Geopolitical Developments:

Investors focused on outcomes from the Munich Security Conference, where defense spending and European strategic autonomy dominated discussions. German Chancellor Friedrich Merz acknowledged a "deep divide" in transatlantic relations, warning the post-WWII rules-based order "no longer exists," despite U.S. Secretary of State remarks showing support for European allies. European leaders emphasized increased defense spending and discussed establishing a common nuclear shield.

Ukrainian President Volodymyr Zelenskyy stated Ukraine aims to join the EU by 2027, requesting an accession date be included in any peace agreement with Russia.

Corporate News:

Mining and metals multinational Rio Tinto is scheduled to report financial results Monday. Additional earnings expected this week include reports from multiple companies across various sectors.

Asian Markets:

Japan's Nikkei advanced 0.2%, though economic growth disappointed at 0.2% annualized for Q4 December, significantly below the expected 1.6%. Trading volume remained thin across the broader Asian region.

Market Implications:

The focus on defense spending and European autonomy signals potential increased investment in the defense sector, while geopolitical tensions continue influencing market sentiment across the continent.