European defense stocks fall, focus on Russia-Ukraine peace talks and US-Iran nuclear negotiations.

European defense sector stocks fell, with market attention on the new round of Russia-Ukraine peace talks and the US-Iran nuclear negotiations taking place in Geneva. Mediobanca gave a weaker-than-market rating to Hensoldt for valuation concerns. The Bloomberg-tracked basket of defense stocks fell 1.3% at one point; Hensoldt led the decline, with a drop of up to 4% in the Frankfurt market. However, the sector is still up 11% so far this year, rising 1.7% on Monday and continuing the 2.5% gain from Friday.