European defense stocks fell again after talks among international leaders raised hopes for a resolution to the conflict.

The Stoxx Europe Aerospace and Defense index fell 1.13%, continuing the previous day's 2.6% decline, amid speculation of diplomatic progress. European markets were mixed performers, with the FTSE 100 hitting an all-time high thanks to Convatec. In contrast, the CAC 40 and DAX recorded losses. UK inflation also exceeded expectations, leading to a depreciation in sterling. Analyst Sanjay Raja pointed to persistent inflationary pressures complicating Bank of England decisions.