Feb 18 (Reuters) - The STOXX 600 index rose on Wednesday, with defence stocks in the lead following strong earnings from the UK's BAE Systems, while investors mulled the outlook for monetary policy amid reports of a leadership change at the European Central Bank.
The pan-European index was up 0.4% at 624.15 points, as of 0813 GMT, with most regional benchmarks in the black.
The defense sector climbed 2.2%, with BAE Systems adding nearly 6% after reporting a better-than-expected jump in full-year operating
profit, as global demand swelled its order backlog to a record 83.6 billion pounds ($113.40 billion).
The broader sector also gained after a report on Tuesday said Germany was preparing to acquire a minority stake in KNDS, the Franco-German maker of the Leopard tank, ahead of its planned listing this year.
Meanwhile, a Financial Times report said Christine Lagarde plans to step down as president of the European Central Bank before the 2027 French presidential elections.
Market reaction across regional assets were relatively muted as investors were not anticipating any major policy shifts in the event of personnel change.
Among others, Europe's largest food retailer Carrefour reported a decline in operating profit, sending shares down 5%.
Shares of Straumann gained 6.2% after the Swiss dental implant maker forecast 2026 sales growth in the high single-digit percentage range.
($1 = 0.7372 pounds)
(Reporting by Avinash P and Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips)
