Europe open: Defence stocks slip as Trump claims Ukraine peace deal is close

European shares were flat at the open on Monday with defence stocks in focus as US President Donald Trump claimed a peace deal between Ukraine and Russia was “closer than ever”, although territorial issues remained unresolved.

The pan-regional Stoxx 600 index was up 0.02% at 0819 GMT with Germany’s DAX down 0.19% and France’s CAC 40 unchanged.

After a two-hour meeting in Florida with Ukraine President Volodymyr Zelenskyy Trump said a draft agreement to end the war was nearly “95% done” but was forced to concede that the future of the eastern Donbas region - occupied by Russia - was still a major sticking point.

Russia appeared to have no interest in stopping its aggression, continuing to bomb civilian targets in the capital Kyiv.

With a shortened trading week ahead of the new year break and no major economic announcements scheduled trade was expected to be thin.

In equities news, shares in arms makers were all lower, led by Leonardo, Hensoldt, Rheinmetall and Saab.

Fresnillo jumped on higher gold and silver prices.

Reporting by Frank Prenesti for Sharecast.com