European stocks opened the last week of the year relatively flat, with the pan-European STOXX 600 index holding steady at 588.87 points, Britain's FTSE 100 at 9880.12 points, Germany's DAX down about 0.1% to 24298.38 points, and France's CAC 40 at 8103.25 points.
European defense stocks fell in morning trading following talks between US President Donald Trump and his Ukrainian counterpart Volodymyr Zelensky over the weekend. Leonardo shares dropped 4.5%, while shares of Kunsberg, Hensoldt, Rheinmetall, and SAP each declined by around 3%.
On the other hand, shares of the French pharmaceutical company Abivax rose 4.9% after the opening bell, leading the major European stock index. The company, which is currently in clinical trials, is attracting investor attention due to acquisition rumors and optimism surrounding its flagship treatment for ulcerative colitis.
Trading volumes are expected to be low this week due to the ongoing Christmas holidays, with European markets set to close on Thursday for New Year's Day.
The prospects of a peace agreement in Ukraine before the end of the year are fading, after US President Donald Trump and his Ukrainian counterpart Volodymyr Zelensky said on Sunday that talks had made progress, but that one or two sticking points remained unresolved.
Trump was seeking a deal before Christmas, but Ukraine and Russia remain far from an understanding on the territorial concessions required from Russia and the security guarantees demanded by Ukraine.
Speaking to reporters after the talks in Florida, President Zelensky said the two sides had reached an agreement on approximately 90% of the 20-point peace plan, and that security guarantees for Ukraine were fully agreed upon. In contrast, Trump appeared less optimistic, saying the agreement was close to 95% complete.
