European markets opened the week on a cautiously optimistic note, closing mostly higher on Monday as investors weighed key geopolitical and corporate developments ahead of major central bank policy decisions.
A landmark defense deal between the United Kingdom and Turkey, diplomatic tensions between London and Beijing, and Novartis’ $12 billion acquisition of Avidity Biosciences dominated headlines across the region.
UK and Turkey seal $11 billion Eurofighter jet deal
British Prime Minister Keir Starmer announced that the UK and Turkey have finalized a defense agreement for the sale of Eurofighter Typhoon jets worth nearly $11 billion.
Speaking alongside Turkish President Recep Tayyip Erdogan in Ankara, Starmer emphasized the economic and strategic importance of the deal.
“This is a really significant deal, because it’s £8 billion ($10.7 billion) worth of orders… these are jobs that will last for 10 years, making the Typhoons, so really big for our country,” Starmer said, according to Agence France-Presse (AFP).
Under the agreement, Turkey will receive 20 Eurofighter Typhoon jets, a move expected to strengthen NATO’s southern defense capabilities.
The aircraft, jointly produced by companies from the UK, France, Germany, Italy, and Spain, is regarded as one of Europe’s premier air-superiority fighters.
European markets close higher ahead of Fed, ECB decisions
European equities ended modestly higher as investors awaited interest rate decisions from the US Federal Reserve and the European Central Bank later this week.
Both institutions’ policy outcomes are expected to influence global sentiment and risk appetite.
At the close, France’s CAC 40 rose 0.16%, led by a 2.01% gain in Schneider Electric.
The EURO STOXX 50 advanced 0.63% with Prosus NV up 2.87%, while Germany’s DAX added 0.31%, supported by Infineon Technologies’ 2.37% rise.
The UK’s FTSE 100 finished flat.
In currency markets, the euro edged up 0.12% to $1.1640, and the British pound gained 0.16% to $1.3337 against the US dollar at 5:34 p.m. CET.
Ukraine will expand long-range strikes, says Zelenskyy
Ukrainian President Volodymyr Zelenskyy said Russia’s oil refining sector is “paying a tangible price” amid intensified Ukrainian strikes.
He pledged to expand the use of long-range capabilities, signaling deeper incursions into Russian territory.
Zelensky also revealed that Kyiv and its allies are preparing a new plan for a potential ceasefire with Russia while emphasizing the continued need for long-range weapons to sustain military pressure.
China condemns UK sanctions on Chinese firms
Beijing criticized the UK’s new Russia-related sanctions targeting 11 Chinese companies, calling the move a “mistake” and warning of possible countermeasures.
China’s Ministry of Commerce urged London to “immediately correct its mistake,” insisting that its firms have strictly controlled exports of dual-use goods and that normal cooperation with Russia “should not be interfered with.”
Novartis CEO defends Avidity deal
Swiss drugmaker Novartis announced plans to acquire Avidity Biosciences Inc. in a $12 billion all-cash transaction, valuing the US-based biotech firm at $72 per share.
The acquisition underscores Novartis’ commitment to expanding into RNA-based therapeutics and rare disease treatments.
Avidity shares surged 42% on Monday, while Novartis stock slipped 0.8% as investors weighed the steep premium.
Novartis CEO Vas Narasimhan defended the move as “an appropriate risk to take,” noting that Avidity’s proprietary AOC™ platform offers a differentiated approach to neuromuscular diseases such as facioscapulohumeral muscular dystrophy.
The post Europe bulletin: UK-Turkey jet deal, market gains, and Novartis’ $12B RNA bet appeared first on Invezz
