European markets closed today, Thursday, with a noticeable rise, as the Stoxx 600 index climbed by 0.6% to achieve its best daily performance in two weeks, reaching its highest level in over two months. This positive momentum was supported by strong gains in the aviation and defense sectors and the financial sector, amid investors evaluating a wave of corporate earnings results.
The aviation and defense sector was among the biggest winners, as its index jumped by 2.2% after a period of pressure ahead of the anticipated summit between U.S. President Donald Trump and his Russian counterpart Vladimir Putin tomorrow, Friday. Despite expectations of increased European defense spending, Richard Flax, chief investment officer at "Mani Farm", pointed to ongoing questions about the timing and size of these expenditures and how much European companies would benefit from them.
Positive earnings reports also boosted market sentiment, as the sub-index for insurance companies rose by 0.9%, nearing record levels it touched last week.
Among the most significant individual movements, Admiral's shares on the London Stock Exchange rose by 6.6% to a new record level after announcing strong results for the first half of the year, while Aviva's shares increased by 2.6% to reach their highest level since December 2007.
In contrast, shares of the Dutch payment company Adyen fell by 4.9% following a cut in its annual revenue forecasts, while shares of video game company Embracer dropped sharply by 23.4% to record its worst daily performance since May 2023, after announcing operational profits and annual forecasts much lower than market estimates.
The biggest winner was the shares of F. L. Smith, the Danish mining and cement technology company, which jumped by 6.7% after announcing strong results for the second quarter and raising its annual profit forecasts.