Defense Sector Surge Across Europe

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

Strategic Agreements and Financial Commitments

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 reached an agreement to formulate a comprehensive plan aimed at ending the war in Eastern Europe. Zelensky highlighted that a substantial £2.26 billion loan from the UK would be allocated towards armament production. Prior to this, Starmer had announced the UK's intention to increase its defense spending.

Stock Market Reactions

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