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Stock markets in Europe, the U.S., and Asia fell in tandem, while the defense sector bucked the trend to lead gains on the back of favorable policy developments
Most major European indices fell, dragged down by trends in U.S. and Asian stock markets, though the defense sector continued to rise.The UK’s FTSE 100 index fell 0.4%, with mining stocks declining as commodity prices weakened; retailer Tesco dropped 5.4%, and Associated British Foods, the parent company of Primark, plummeted 10%.Madrid’s IBEX 35 index fell 0.2%, while France’s CAC 40 index dropped 0.1% as luxury goods stocks declined.The defense sector provided a bright spot across the continent after President Donald Trump called for U.S. defense spending to reach $1.5 trillion. BAE Systems and Leonardo led the sector, rising 5.8% and 4.4%, respectively.The German DAX index continued its rebound, driven by defense stocks, rising slightly by 0.25% after hitting a record closing high the previous trading day. Thanks to the boost from defense stocks, Italy’s FTSE MIB index remained flat despite weakness in banking stocks.
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