European Defense Stocks Surge After Hamas Attack

European defense stocks experienced a significant boost on Monday following a surprise attack by Hamas on southern Israel over the weekend. Italian defense company Leonardo saw a 6% increase in trading, while Germany's Rheinmetall climbed 5.4%. France's Dassault Aviation and Thales also experienced notable gains of 4.9% and 4.6%, respectively. In London, BAE Systems shares rose by 4%.

Energy Stocks and Oil Prices Rise

In addition to the surge in defense stocks, energy company shares also witnessed a notable upturn due to the attack, leading to an increase in oil prices. Portugal's Galp saw shares rise by 3.5%, while Spain's Repsol experienced a 2.5% increase in shares. BP and Shell in London similarly saw their shares go up by 2.5% and 2.4% respectively. Eni in Italy also witnessed a 2.1% rise in shares, and France's TotalEnergies went up by 1.8%.

European Airline Shares Take a Hit

Conversely, the attack by Hamas resulted in the cancellation of several flights into Israel by European carriers and a subsequent decline in European airline shares. Air France-KLM shares fell by 3.6%, while British Airways parent International Consolidated Airlines Group shares dropped by 3.4% as of 0938 GMT. Ryanair shares were also traded down by 1.8%, and Germany's Lufthansa saw a decrease of 2.8%.