European Defense Sector Sees Significant Boost

Following a pivotal summit in the United Kingdom, where major European leaders convened to discuss the continent's military budget and the ongoing conflict in Ukraine, defense companies across Europe experienced a notable surge in their stock prices.

Agreements and Investments

In the wake of a tense meeting between US President Donald Trump and Ukrainian President Volodymyr Zelensky, UK Prime Minister Keir Starmer announced a collaborative plan involving London, Kiev, and Paris aimed at ending the war in eastern Europe. Zelensky highlighted a £2.26 billion loan from the UK, earmarked for armament production, while Starmer reiterated the UK's commitment to increasing its defense spending.

Market Response

The market reacted positively, with Rheinmetall's shares climbing 10.93% to €1,117 each by 9:33 am CET. Shortly after, BAE Systems saw a 16.42% increase, reaching £1.29 per share. Similarly, Leonardo, Saab, and Thales all enjoyed over a 10% rise in their stock prices.