European markets dipped amid China-Taiwan tensions, with defense stocks falling and healthcare gains.

European markets dipped Monday, with Italy’s FTSE Mib down 0.3%, as geopolitical tensions rose over China’s Taiwan exercises and investor focus shifted to upcoming U.S. economic data. Defense stocks fell, led by Leonardo’s 4.4% drop, while healthcare firm DiaSorin gained after FDA approval for a new test. Prysmian and Fincantieri announced a joint acquisition of Xtera Topco, and Banca Popolare di Sondrio agreed to sell its merchant unit to Nexi. In the U.S., major indices closed nearly flat amid light trading ahead of year-end. The euro rose to $1.1778, Brent crude climbed to $61.76, and gold fell to $4,461.61 an ounce.