European defence shares surge as investors bet on higher spending

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On Monday, the shares in European defense companies were recorded, as investors bet that governments will have to touch more on continental security, increasing military spending.

Rheinmetall was 6 percent in Frankfurt, Bae Systems rose 5 percent in London, and Tarres rose 3.8 percent in Paris. Stoxx europe Aerospace and protection The index hit his highest level at least since the beginning of the 1990s.

The width of the industry comes, as European leaders gather in Paris to work on how to respond to US President Donald Trump Determination of starting negotiations About the end of the war in Ukraine with Russia’s Vladimir Putin.

Defense funds promote the prospects of European countries, which play a role in security for Ukraine, said analysts as a wide range of protection of expenditures in the region.

It was “huge for the last few days” for European geopolitics and “Maybe we look at themselves as the highest cost of European defense,” said Deutsche Bank’s strategy.

“Now there is more urgency to increase defense expenses, and this is what European leaders seem to unite,” he added.

Last month, when returning to the White House, Trump put pressure on European allies.

In Europe, senior politicians have been committed to spending more protection in recent days. British Prime Minister Sir Keir Starmer has offered to install British troops on the ground and has pledged to establish a “way” for the country’s defense costs, reaching 2.5 percent of GDP.

In a conversation with Rheinmetall, Rheinmetall’s chief executive Armin Paperer said that the company would grow more than before.

In an interview with this month’s financial times, Paperer said: “It simply came to our notice then. In order to meet high demand in a number of Europe, we need weapons production on an industrial scale. This is also what politicians call. “

Until the entire large-scale invasion of Russia, Ukraine almost three years ago, some investors were wary of supporting the defense sphere due to moral concerns.

Government bond yields rose, as investors were taken into free defensive expenses. The yield of 10-year German bonds in Benchmark increased by 0.07 percentage points, reaching 2.49 percent, as the debt price fell.

The golden yield of ten years has increased by 0.05 percentage points – by 4.56%.

“In terms of market consequences, the highest defensive expenses must lead to the top pressure of the European pace.

“It is clear that Europe must grow up as a peaceful process.” He added on his defense, he added.