> European defense stocks surged in early trading on Tradegate, while futures for the Euro Stoxx 50 also gained ground, after the region’s leaders met to offer Ukraine their support amid concerns of a US pullback. Contracts for the Euro Stoxx 50 were up 0.5% at 08:00 a.m. in Paris. In early trading on Tradegate, BAE Systems Plc was up 23%, Rheinmetall AG up 19%, Thales SA up 17%, Saab AB up 17%, Dassault Aviation up 16%, Rolls-Royce Plc up 13% and Leonardo SpA up 12% compared to their primary exchanges close on Friday.
> For Vincent Juvyns, global market strategist at JPMorgan Asset Management, if one casts aside the recent diplomatic clashes between allies, the big picture for investors is that peace in Ukraine remains a possibility for 2025 and that public defense spending will rise sharply in the coming years. “One senses a large consensus for Europe to take its future in its own hands, and that more military spending is coming,” he said.
> The prospect of a surge in defense spending by European countries has led to a sharp rally in the shares of companies involved in the sector. Rheinmetall, which is one of Europe’s biggest suppliers of material for land forces, has already gained 67% so far this year and is up more than 800% since the war started three years ago.
> Speaking on Sunday, Pierre-Yves Gauthier, president of AlphaValue said that for investors, the big geopolitical picture hasn’t changed except for the fact that defense stocks would likely rise sharply. “For markets it is likely to be business as usual with now the conviction that the good run of European defense stocks is here to stay,” he said.
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> European defense stocks surged in early trading on Tradegate, while futures for the Euro Stoxx 50 also gained ground, after the region’s leaders met to offer Ukraine their support amid concerns of a US pullback. Contracts for the Euro Stoxx 50 were up 0.5% at 08:00 a.m. in Paris. In early trading on Tradegate, BAE Systems Plc was up 23%, Rheinmetall AG up 19%, Thales SA up 17%, Saab AB up 17%, Dassault Aviation up 16%, Rolls-Royce Plc up 13% and Leonardo SpA up 12% compared to their primary exchanges close on Friday.
> For Vincent Juvyns, global market strategist at JPMorgan Asset Management, if one casts aside the recent diplomatic clashes between allies, the big picture for investors is that peace in Ukraine remains a possibility for 2025 and that public defense spending will rise sharply in the coming years. “One senses a large consensus for Europe to take its future in its own hands, and that more military spending is coming,” he said.
> The prospect of a surge in defense spending by European countries has led to a sharp rally in the shares of companies involved in the sector. Rheinmetall, which is one of Europe’s biggest suppliers of material for land forces, has already gained 67% so far this year and is up more than 800% since the war started three years ago.
> Speaking on Sunday, Pierre-Yves Gauthier, president of AlphaValue said that for investors, the big geopolitical picture hasn’t changed except for the fact that defense stocks would likely rise sharply. “For markets it is likely to be business as usual with now the conviction that the good run of European defense stocks is here to stay,” he said.
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