European stock indices mostly ended lower on Monday amid a further rise in sovereign bond yields in the eurozone.

The Stoxx Europe 600 index, which tracks the region’s largest companies, fell 0.35% to 650.5 points.

Britain’s FTSE 100 lost 0.26%, France’s CAC 40 slipped 0.33%, and Spain’s IBEX 35 dropped 0.85%. Germany’s DAX gained 0.15%, while Italy’s FTSE MIB added 0.27%.

Both of the latter benchmarks reached fresh all-time highs amid expanding defense budgets among NATO countries. Last year, the organization’s European members and Canada allocated nearly 20% more to core defense spending than a year earlier, NATO Secretary General Mark Rutte told reporters ahead of the North Atlantic Alliance summit opening on Tuesday. He also expressed optimism about the goal of raising defense spending to 5% of GDP by 2035.

Investors were also assessing economic data.

Retail sales in the eurozone rose 0.2% in May compared with the previous month, the European Union’s statistical office Eurostat reported on Monday. The consensus forecast of analysts cited by Trading Economics had called for an increase of 0.3%.

German industrial orders rose 1.9% in the previous month compared with April, according to data from the country’s Federal Statistical Office. Analysts had expected an increase of 1.2%.

easyJet led gains among Stoxx 600 components, jumping 9.3% after saying its board of directors was prepared to accept a new takeover offer from Castlelake valuing the airline at £5.23 billion ($6.97 billion).

The sharpest decline in the benchmark index came from semiconductor-sector company BE Semiconductor Industries, which fell 5.5% as the sector came under pressure following reports of supply-chain problems at Nvidia.

Shares of several other chipmakers and equipment manufacturers also declined: ASM International by 1.2%, ASML Holding by 0.4%, and Infineon Technologies by 0.2%.

Shares in transport and logistics company Maersk fell 5.5%, bakery chain Greggs dropped 4.5%, and brewer AB InBev and chemicals company Bayer each lost 4.1%.

Defense companies, by contrast, increased their market capitalization, including Renk Group (+4%), Leonardo (+4.6%), Saab (+4.4%), Hensoldt (+6.1%), BAE Systems (+2.2%), Rheinmetall (+3.4%) and Babcock International (+0.9%).

Shares in Thales, which develops technological solutions for the aerospace and defense industries, rose 1.2%, while marine drone maker Exail Technologies gained 2.1% after reports that Thales was buying a stake in Exail in a deal valuing the company at 3.9 billion euros.

The share price of automotive components maker Continental fell 2.2%. Earlier, the company announced that it had reached an agreement to sell its ContiTech division at a valuation of 4 billion euros and plans to distribute 2.5 billion euros from the deal to shareholders.

The market value of pharmaceutical company Novartis also declined 2.2% after it announced the acquisition of Britain’s Myricx Bio, which is developing a new class of antibody-drug conjugates (ADCs) used in cancer treatment, for up to $1.5 billion.