Protection shares fall as the global market goes out of the sale

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Chairman of the Board of Rheinmetall AG Armin Papperger, stands at the annual press conference at the Group Staff.

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European defense giants have expanded the latest losses ending with a loose with a large and heavy stock market market on Monday.

US President Donald Trump After spreading did not show signs of enabling the aggressive trade policy Sweeping new tariffs “Sometimes you have to take medicine,” he said last week.

US stock markets fall sharply Friday is the second day of consistent, with all three main index More than 5% fall as part of global road. Us futures By continuing on the road to sell Monday morning.

European defense shares increased in recent months Was in the regional boost for strategic independence Among the worst performers Monday.

German gun producer Rheinmetall 5.6% low, London Time (6:20 AM), loss of losses after 27% after the open after the open. According to Recorders, the company’s worst day was briefly on the way.

Shares of German Defense Giant THYSSENCRUPP 8% of Germany fell Colored group Trade 4.5% lower, and France Fate 4.3% collapsed. Swedish Defense Producer Saab last time 1.3%, Italy Leonardo Sold about 6% lower.

Condition, stocks Lockheed Martin and General dynamics Both were close to 3% in trade before the market Northrop Grumman 4.5% fell

Ben Heelan, head of EMEA Aerospace and Defense Research in Bank of America, said the tariff for European defense shares is likely to be “very small”. Added that current stock price levels represent the “great opportunity” for investors.

“What we see in Europe is, this is only seen in this idea and we have vision. 3% of GDP,” Heelan told CNBC “Squawk Box Europe“Monday.

“The next big Datapoint will be the results of Q1, we will take many comments on opportunities and ability reviews from companies,” he said.

Saab logo is seen during the Defense Industry Exhibition in Poland on September 3, 2024.

Nurphoto | Nurphoto | Getty pictures

Comments after the comments followed by defense costs Pressure from TrumpAllies claim that they are extremely relying on the United States for their security.

MPs were passed in Germany Historical debt reformPopying for a large wreckage for defense, Prime Minister Keir Starmer was in the UK The British has been pledged to increase national defense costs.

The European Union also compiled plans To mobilize up to 800 billion euros ($ 862.2 billion) To make regional security Bulgarian.

On Monday, Rheinmetall asked to react to a reaction to the stock price, the American bank, which is a sector you see today, especially in the last three to six months, is a very popular sector. ”

Brevity, hedging funds are significantly reduced when they are commonly exposed to a certain market or active class.

A hedge against tariffs?

On Wednesday, Trump announced a new update that reached a new road in the “mutual tariff” policy, including 10% tariffs in almost every country.

The White House also applied a 25% duty Imported car importsAlso 25% tariff in all steel and aluminum products.

Loredana Muharremi, capital research in Morningstar, Monday, Monday, Trump’s tariffs were extended to the defense goods, the impact of European resources under the scope will be limited.

German Rheinmetall MAN Tactical Military vehicles Edward Peperko is parked in the vilies of Peperko. The Slovenian army received 40 of the Rheinmetall trucks 40, 28 M55, 38 M55 Tank and 38 M55s Tank, 38 M55s tanks and 38 goods, which were sent from the United States.

Luke Dakskobler | Lightrocket | Getty pictures

“It is too early to evaluate the full impact of new tariffs in the defense sector, this is the net importer of Europe’s US military defense equipment,” said Muharremi informed CNBC via email.

“Companies such as Bae Systems, Rheinmetall, Thales, Saab and Leonardo – and in many cases, industrial traces in the United States, providing hedging on both industrial prints, but also the potential re-election,” he said.

– CNBC’s Chloe Taylor contributed to this report.

 
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