European Stocks Rise on Lower Oil Prices, Defence Sector Leads
European stocks rose on Wednesday as oil prices declined, easing inflation concerns and improving the macro backdrop for the European Central Bank. The STOXX Europe 600 gained about 0.4% to 645.04 in early trading, with most major regional markets moving higher.
The defence sector led the advance, with Sweden's Saab and French military-imaging specialist Exosens among the stronger performers. Saab's stock price rose due to its strong order prospects, according to Bank of America analysts who expect European defence-industry revenue to grow about 15% annually through 2030.
Exosens has a catalyst for earnings growth, having raised its 2026 guidance last week after expanding night-vision production capacity and seeing stronger demand for drone, counter-drone, and surveillance technology. The company now expects revenue growth of about 20% and adjusted EBITDA growth of roughly 25% at the midpoint of its guidance.