06:41 AM EST, 03/02/2026 (MT Newswires) -- European bourses tracked lower midday Monday as traders weighed a hot war in the Middle East, and retreated into defense and oil shares.

Bank and tech shares decliners, as markets awaited further developments.

Investors also eyed Wall Street futures flashing red, and largely lower closes overnight on Asian exchanges.

In economic news, the Eurozone manufacturing purchasing managers index (PMI) rose to 50.8 in February from 49.5 in January, striking above the 50-mark that separates growth from contraction, and also hitting a 44-month high, reported S&P Global.

The pan-continental Stoxx Europe 600 Index was off 1.4% mid-session.

The STOXX Europe Targeted Defense Index rose 2%.

The Stoxx Europe 600 Technology Index was down 2.2%, and the Stoxx 600 Banks Index lost 2.8%.

The Stoxx Europe 600 Oil and Gas Index rose 1.6%, while the Stoxx 600 Europe Food and Beverage Index declined 1%.

The REITE, a European REIT index, fell 1.3%, while the Stoxx Europe 600 Retail Index was down 0.3%.

On the national market indexes, Germany's DAX was down 2%, and the FTSE 100 in London lost 0.9%. The CAC 40 in Paris was down 1.8%, and Spain's IBEX 35 eased 2.4%.

Yields on benchmark 10-year German bonds were lower, near 2.66%.

Front-month North Sea Brent crude-oil futures were up 7.7% at $78.49 a barrel.

The Euro Stoxx 50 volatility index was up 22.3% at 24.08, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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