European markets open higher as investors assess Munich Security Conference

European markets opened higher on Monday, as investors digest the key points from this year’s Munich Security Conference.

The pan-European Stoxx 600 was up 0.4% shortly after the opening bell, with major bourses and most sectors in the region in positive territory. In London, the FTSE 100 was 0.15% higher, Germany’s DAX advanced 0.34%, and France’s CAC 40 gained 0.1%.

Geopolitics and defense returned to the spotlight as investors focused on this year’s Munich Security Conference. The event saw several European leaders and policymakers reiterate the need for greater defense spending to accelerate the continent’s strategic autonomy, with discussions of a common nuclear shield.

Despite U.S. Secretary of State Marco Rubio striking a markedly more conciliatory tone towards European allies in his speech Saturday, German Chancellor Friedrich Merz acknowledged a “deep divide” in the transatlantic partnership, warning that the post-World War Two rules-based order “no longer exists.”

Also speaking at the MSC, Ukrainian leader Volodymyr Zelenskyy said his country would be ready to join the EU by 2027, and said a date for accession should be included in any peace agreement with Russia.

In corporate earnings, mining and metals multinational BHP Group will update investors on its finances on Monday. Airbus, Nestlé and Renault are among the names reporting results later this week.

In Asia, Japan’s Nikkei advanced 0.2%, as economic growth in the country came in at 0.2% annualized for the December quarter, lagging an expected 1.6% print. Trading was thin elsewhere in the region, as markets in China, South Korea and Taiwan were closed for the Lunar New Year holiday.

Stock markets in the U.S., meanwhile, are closed on Monday for Presidents’ Day.