In Asia, Japan’s Nikkei advanced 0.2%, as economic growth in the country registered an annualized rate of 0.2% for the December quarter, falling short of the anticipated 1.6% figure. Trading activity was subdued in other parts of the region, given that markets in China, South Korea, and Taiwan were closed in observance of the Lunar New Year holiday. European markets experienced an upward trend on Monday, as investors processed the significant takeaways from this year’s Munich Security Conference. The pan-European Stoxx 600 exhibited an increase of 0.2% at 10:25 a.m. in London, as major exchanges and the majority of sectors across the region found themselves in positive territory. Trading of Dassault Systemes shares experienced a temporary suspension on Monday following a significant decline in the company’s stock price. The pause occurred as broker AlphaValue downgraded its rating from Buy to Reduce, citing renewed concerns regarding AI monetization and a “worrying loss of momentum” at the French software group. Shares were last observed at a decline of 7.8% following the resumption of trading.

Geopolitics and defense regained prominence as investors directed their attention to this year’s Munich Security Conference. The gathering featured numerous European leaders and policymakers emphasizing the necessity for increased defense expenditures to enhance the continent’s strategic independence, alongside deliberations regarding a unified nuclear defense system. In a speech on Saturday, U.S. Secretary of State Marco Rubio adopted a notably more conciliatory approach towards European allies. However, German Chancellor Friedrich Merz pointed out a “deep divide” in the transatlantic partnership, cautioning that the post-World War Two rules-based order “no longer exists.” “Appeasement always brings new wars,” states Kaja Kallas. During his address, Ukrainian leader Volodymyr Zelenskyy asserted that his nation aims to be prepared for EU membership by 2027, emphasizing that a timeline for accession ought to be incorporated into any peace accord with Russia.

Meanwhile, U.K. lender NatWest Group experienced a 3.7% increase, leading the FTSE 100 index, as it initiated a £750 million share buyback program on Monday. In other markets, European mining stocks experienced significant declines during the morning trading session. Rio Tinto experienced a decline of nearly 2% after the multinational mining corporation halted operations at its Simandou iron-ore mine in Guinea, subsequent to a fatal incident at the SimFer project late Sunday. Ahead of its latest earnings update Tuesday, BHP Group experienced a decline of 2.6%.

Meanwhile, Glencore, which was previously poised to merge with Rio Tinto before the merger was called off earlier this month, also saw a decrease, falling by 1.8%. Fresnillo experienced a decline of 1%, while Anglo American saw a decrease of 1.2%. The FTSE Industrial Metals and Mining Index recorded a decline of 1.6% in its most recent observation. In the realm of corporate earnings, notable entities such as Airbus, Nestlé, and Renault are set to disclose their results later this week.