European Defense Sector Sees Significant Gains

Following a pivotal summit in the United Kingdom, which brought together major European leaders to deliberate on the continent's military budget and the ongoing conflict in Ukraine, defense companies across Europe experienced a notable rally in their stock prices on Monday.

Agreements and Plans for Peace

After a tense meeting between United States President Donald Trump and Ukrainian President Volodymyr Zelensky, UK Prime Minister Keir Starmer disclosed that London, Kiev, and Paris have agreed to collaborate on a strategy to end the war in Eastern Europe. Zelensky highlighted that a £2.26 billion loan from the UK would be allocated towards armament production. Earlier, Starmer had announced plans for the UK to increase its defense spending.

Stock Market Reactions

Rheinmetall's shares surged by 10.93% at 9:33 am CET, reaching €1,117 per share. Shortly after, BAE Systems' shares skyrocketed by 16.42%, trading at £1.29 each. Similarly, Leonardo, Saab, and Thales also saw their stock prices increase by over 10%.