FRANKFURT: European shares were subdued on Monday, ahead of key meetings between Ukraine, European leaders and US President Donald Trump, following a Russia-US summit that ended without an immediate agreement.
The pan-European STOXX 600 index closed 0.1% up, after logging a second straight weekly gain on Friday.
Ukraine’s Volodymyr Zelenskiy will meet Trump along with other European leaders in a bid to draw out a peace deal that will not favour Moscow.
Trump met with his Russian counterpart Vladimir Putin on Friday and agreed that a peace deal should be worked upon without a ceasefire.
Europe’s index tracking aerospace and defence stocks was up 0.7%, after falling in the last session. UK’s Babcock gained 5.2% after RBC initiated the engineering company at “Outperform”.
“If we can get to a peace agreement, the market would likely take that positively, but it remains unclear at this stage, given that the two sides seem quite far apart,” said Kiran Ganesh, multi-asset strategist at UBS Global Wealth Management.
“We don’t have a lot of clarity on how they (important market catalysts) might turn out, so the market has been quite directionless.”
Most sectors on the benchmark STOXX 600 were lower, with a 1.6% and 0.5% decline in miners and heavyweight banks weighing the most.
Novo Nordisk jumped 6.6% after the drugmaker’s weight-loss drug Wegovy received an accelerated approval by the US Food and Drug Administration to treat a serious liver condition.
Separately, it announced it was offering its diabetes drug Ozempic for $499 per month to eligible patients in the US
The gains boosted the healthcare sector up 1.4%, logging its eighth session of gains. The sector took a beating this year, on uncertainty around Trump’s pharma tariffs, but is making a recovery.
Most regional bourses also closed lower, while UK’s FTSE 100 managed to eke out a 0.2% gain.
The Federal Reserve’s annual Jackson Hole symposium later this week will be in focus, where Chair Jerome Powell and other policymakers will talk economic outlook and the central bank’s policy framework.
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