European Defense Stocks Soar Amidst Geopolitical Shift
Following a UK and France-led effort to broker a Ukrainian peace deal, European defense stocks experienced a significant surge. Companies like BAE Systems, Rheinmetall, Thales, and Leonardo saw double-digit percentage increases, driven by investor anticipation of heightened European defense budgets. This rally is fueled by concerns over potential US withdrawal of security guarantees for Ukraine and a broader push for increased European military self-reliance. The surge also impacted related aerospace companies, pushing several to record highs and reflecting a broader “European rearmament cycle.”
John Q. Hosedrinker