LIVE MARKETS-Defence a bright spot, energy drags

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DEFENCE A BRIGHT SPOT, ENERGY DRAGS

There were no big moves at the open in Europe on Thursday as markets consolidated a rally sparked by a U.S. trade truce with China, turning their attention to how tariff uncertainty is affecting the economy, corporates and the policy outlook.

Defence stocks .SXPARO stood out as the only clear gainers on supportive newsflow and Ukraine peace talks mired in confusion. German Foreign Minister Johann Wadephul said his country backed U.S. President Donald Trump's demand to increase NATO's spending target to 5% of national GDP.

On the STOXX 600, top gainers included Britain's Serco SRP.L after winning UK navy contracts worth over 1 billion GBP, along with Rheinmetall RHMG.DE, Saab SAABb.ST and Leonardo LDOF.MI, all up over 3%.

Among smaller defence plays, Hensoldt HAGG.DE and Renk R3NK.DE both gained more than 5%, helping the German mid cap MDAX .MDAXI index buck broader weakness with a gain of 0.5%.

Expectations of a potential U.S.-Iran nuclear deal that could result in sanctions easing pushed crude prices lower, making the energy sector .SXEP the top drag in Europe, and keeping the STOXX 600 down 0.3%.

Elsewhere, price action was muted.

(Danilo Masoni)

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