07:56 AM EDT, 09/24/2025 (MT Newswires) -- European bourses tracked moderately lower midday Wednesday despite a rally in continental defense-sector issues, after US President Donald Trump said NATO should defend its airspace against Russian incursions, and indicated Kyiv may win its war with Moscow.

The Stoxx Europe Total Market Defense Capped Index (FSDF) rose 1.7% mid-session.

Oil and property stocks led gainers on European trading floors, while retail issues lagged.

Investors also eyed Wall Street futures modestly in the green, and choppy closes overnight on Asian exchanges, though Tokyo's benchmark Nikkei 225 struck a fresh all-time high on a tech-sector rally.

In economic news, Germany's business climate index logged at 87.7 in September, down from 88.9 last month, and slipping further below the 100-mark that separates optimism from pessimism, reported the Institute for Economic Research (Ifo).

The pan-continental Stoxx Europe 600 Index was off 0.4% mid-session.

The Stoxx Europe 600 Technology Index was flat, and the Stoxx 600 Banks Index lost 0.4%.

The Stoxx Europe 600 Oil and Gas Index was up 0.5%, but the Stoxx 600 Europe Food and Beverage Index fell 0.2%.

The REITE, a European REIT index, rose 0.3%, while the Stoxx Europe 600 Retail Index was down 0.4%.

On the national market indexes, Germany's DAX was down 0.2%, and the FTSE 100 in London lost 0.2%. The CAC 40 in Paris was off 0.6%, and Spain's IBEX 35 was 0.1% lower.

Yields on benchmark 10-year German bonds were lower, near 2.74%.

Front-month North Sea Brent crude-oil futures were up 1% at $68.32 a barrel.

The Euro Stoxx 50 volatility index was up 1.6% at 16.84, indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.