European stocks end mixed amid Russia-Ukraine peace plan, rate cut hopes

By Mucahithan Avcioglu

ISTANBUL (AA) - European stocks closed Monday on a mixed note, following strengthening expectations that the US Federal Reserve will cut interest rates and positive signals in the Russia-Ukraine peace process.

The pan-European Stoxx 600 index rose 0.14%, or 0.78 points, to close midweek at 562.88.

Germany's DAX 40 index added 0.64% to end at 23,239.18 points, and Spain's IBEX 35 climbed 0.92% to 15,967.8.

On the other hand, the UK's FTSE 100 decreased 0.05% to end at 9,534.91 points, and France's CAC 40 was down 0.29% to 7,959.67.

Italy's FTSE MIB index fell 0.85% to close at 42,298.17 points.

The past several weeks have been turbulent for markets as investors grew increasingly concerned about the sky-high valuations of artificial intelligence-related technology companies, which are expected to fuel a large portion of market gains in 2025.

Meanwhile, the Stoxx 600 Aerospace & Defense Index fell 2% amid ongoing talks between the US and Ukraine to develop a peace plan.

Shares of German arms manufacturer Rheinmetall fell 5%, and Hensoldt dropped 4.5%.

German pharmaceutical and chemical firm Bayer's share price also rose nearly 11% after the company announced positive data from Phase III trials of its blood thinner, Asundexian.

Meanwhile, Siemens Energy's share price rose 5.6% on expectations that it would benefit from a peace agreement between Ukraine and Russia.