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The shares in European defense companies have achieved record levels on Monday, as investors are betting that governments will have to bear more burden on the security of the continent by increasing military spending.
Rheinmetall increased by 6 percent in Frankfurt, Bae Systems increased by 5 percent in London, and Thales increased by 3.8 percent in Paris. The space and defense index in Europe in Europe has reached its highest level since the early 1990s.
The apostasy comes at the sector level while European leaders meet in Paris to learn how to respond to US President Donald Trump’s decision to start talks with Vladimir Putin to end the war in Ukraine.
Analysts said that the analysts had strengthened through the possibility that European countries will play a role in a security solution for Ukraine.
“Maybe we will look at them as a great motivation for the supreme European defense spending,” said Jim Reed, a strategic expert at Deutsche Bank.
He added: “It seems that there is now more urgent to increase defensive spending, and this is something that European leaders seem to be wandering.”
Since his return to the White House last month, Trump has increased pressure on European allies to enhance their defensive spending beyond the NATO goal of 2 percent of GDP, and it floats on 5 percent as a new goal – which is now on Poland only It is close to Poland to reach.
Senior politicians across Europe in recent days have committed more to defense. British Prime Minister Sir Kerr Starmer offered to put the British forces on the ground and is committed to placing a “road” of the country’s defensive spending to reach 2.5 percent of GDP.
Speaking to Reuters on Friday, CEO of Rheinmetall Armin Papperger said the company would grow more than previously expected.
In an interview with The Financial Times this month, Papperger said: “The volume requires that he be able to play in the same league that resembles weapons. .
Even Russia has been widely invaded by Ukraine for nearly three years, some investors were cautious about supporting the defense sector due to moral concerns.
Government bond returns increased when investors moved to prices more. The 10 -year -old German bond yield increased by 0.07 percentage points to 2.49 percent with a decrease in the debt price.
Doctrine revenue increased for ten years 0.05 degrees Celsius to 4.56 percent.
“In terms of the effects of the market, higher defensive spending should lead to upward pressure on European rates,” said Mohit Kumar of Jeffrez.
“Which is the peace process, it is clear that Europe will need to increase,” he added.