March 16 (Reuters) - Europe's STOXX 600 edged higher on Monday, with Commerzbank shares climbing after UniCredit launched a bid for a 30% stake in the German lender, while defence stocks also gained on U.S. President Donald Trump's call to keep the Strait of Hormuz open.
The pan-European benchmark STOXX 600 was up 0.1% at 596 points, as of 0817 GMT. The index has dropped nearly 6% since reaching a record high in February, just prior to the outbreak of the Middle East conflict.
Shares of Commerzbank
gained 3.5%, while Italian bank UniCredit slipped 0.5%.
UniCredit said it did not expect to reach control of the German lender, in which it holds a 26% equity stake and an additional 4% through total return swap contracts.
Defence stocks advanced roughly 1% as European Union foreign ministers prepared to meet later in the day to discuss strengthening a small naval mission in the Middle East.
Defence stocks often climb when geopolitical tensions increase, as investors anticipate higher near-term demand for military equipment and services.
Markets in Asia were mixed as the U.S.-Israeli war on Iran enters its third week, with Iranian actions constraining traffic through the Strait of Hormuz, a key conduit for around one‑fifth of global oil and liquefied natural gas, posing a significant risk to the global economy.
Energy giants Shell and BP added 1% and 2%, respectively, as oil prices remained above $100 a barrel.
Attention this week will be on interest rate decisions in the U.S., the UK, Europe and Australia, with central banks holding their first full meetings since the start of the war and widely expected to pause further rate cuts for now.
(Reporting by Avinash P in Bengaluru; Editing by Sherry Jacob-Phillips)
