European stock markets experienced a notable uptick in trading on Monday, with The Stoxx Europe 600 rising 1.12%. Germany's DAX saw an impressive surge of 2.64%, while the FTSE 100 in London gained 0.70%. France's CAC 40 advanced by 1.09%, and the Swiss Market Index appreciated by 1.25%. In the realm of inflation, the euro area recorded an annual inflation rate estimated at 2.4% for February, down from January’s 2.5%, based on flash estimates from Eurostat, the European Union's statistical office.
Estonia and Croatia reported the highest inflation rates at 5.0% and 4.7%, respectively. In contrast, France and Ireland displayed significantly lower rates at 0.9% and 1.3%. The HCOB Eurozone Manufacturing PMI, compiled by S&P Global and indicative of the health of eurozone factories, escalated to 47.6 in February, up from January’s 46.6.
Despite achieving its highest measurement in two years, contraction was prevalent across most countries, with only Ireland and the Netherlands reporting favorable figures of 51.9 and 50.0, respectively. France and Germany posted the lowest readings at 45.8 and 46.5. Turning to the UK, the S&P Global UK Manufacturing Purchasing Managers' Index, adjusted for seasonal variations, fell to 46.9 in February from 48.3 in January, indicating a 14-month low.
This also marks the fifth consecutive month in which the PMI has remained in contraction, signaling challenges in the UK manufacturing sector. On the corporate front, shares of European defense stocks experienced significant gains during Monday trading, bolstered by expectations of increased EU defense spending amid concerns regarding potential US military support withdrawal.
Noteworthy advancements included Thales shares, which rose by 16% in Paris, Rheinmetall's stock climbing 14% in Frankfurt, and BAE Systems closing 15% higher in London. In the financial sector, ING Groep announced on Monday a deal with Reggeborgh Groep to acquire an additional 17.6% stake in the specialized wealth management firm Van Lanschot Kempen.
With this acquisition, ING’s total stake in Van Lanschot Kempen will increase to 20.3%. However, specific financial details regarding the transaction were not disclosed. In health news, UK pharmaceutical giant AstraZeneca reported significant findings from a phase 3 trial regarding tezepelumab, marketed as Tezspire.
The trial results indicated that the treatment led to considerable reductions in nasal polyp severity, surgical interventions, and systemic corticosteroid use in patients with chronic rhinosinusitis suffering from nasal polyps when compared to placebo. Meanwhile, Britain’s Information Commissioner’s Office announced an ongoing investigation into social media platforms TikTok, Reddit, and Imgur regarding their measures for protecting the privacy of child users in the UK.
This scrutiny arises from rising concerns that children might encounter inappropriate or harmful content. TikTok representatives highlighted that their recommendation systems are designed with rigorous measures to ensure teen safety, including advanced safety features and strict limitations on the content available in teens' feeds.
Requests for comments from Reddit and Imgur remained unanswered..