01.09.202516:11:21UTC+00European Stocks Edge Higher

European stocks ended slightly higher on the first trading day of September as investors continued to evaluate the outlook for global interest rates and geopolitical risks in Europe. The Eurozone's STOXX index increased by 0.3% to 5,365, while the pan-European STOXX 600 rose by 0.2% to 551. The defense sector gained considerable attention following European Commission President Ursula von der Leyen's announcement that the EU is drafting detailed plans for potential military deployments to Ukraine. These plans are part of post-conflict security assurances fully supported by US capabilities. As a result, Rheinmetall's shares surged over 3.2%, with BAE Systems, Airbus, Rolls Royce, and Leonardo experiencing gains between 4.5% and 1%. Additionally, Novo Nordisk rose by 1.8% after revealing that its weight-loss drug, Wegovy, lowers the risk of heart attacks. Meanwhile, bank stocks were generally on the rise amid ongoing volatility in fixed-income markets, ahead of the confidence vote on the French budget, which emphasized the yield spreads among Eurozone nations.