By Free Republic | Created at 2025-03-03 14:41:23 | Updated at 2025-03-03 20:30:10
6 hours ago
Defense Stocks Soar Amid Looming Transatlantic Split
Morningstar UK ^ | 3/3/2025 | Lukas Strobl
Posted on 03/03/2025 6:07:16 AM PST by marcusmaximus
European aerospace and defense stocks jumped by double-digit percentages as events in Washington DC signal deteriorating Western alliances.
US President Donald Trump’s acrimonious press conference with Ukraine’s Volodymyr Zelensky on Friday, which prompted a European scramble to offer Ukraine separate security assurances, has boosted the region’s weapons makers at Monday’s open.
Among defense majors, Germany’s Rheinmetall RHM and Italy’s Leonardo LDO had each jumped 11% by 10:30AM CET, while BAE Systems BA. was up 15%. France’s Thales HO rose 14% and aircraft makers Dassault Aviation AM and Saab SAAB rose 15% and 9%, respectively.
Among smaller companies in the sector, defense electronics group Hensoldt HAG rose 22%, while Kongsberg KOG rose 9%. Britain’s Chemring CHG traded 8% higher and QinetiQ QQ. was up 7%.
“European defense stocks continue to rally on the back of the latest developments including talks about a potential US pullback and increasing pressure from the US for Europe to boost defense budgets,” Morningstar aerospace and defense anlayst Loredana Muharremi said on Monday.
European Defense Stocks Continue to Outperform US Peers
At the same time, defense-exposed US stocks were little changed in pre-market trading, with Palantir PLTR up just over 2%. “Investors expect US support pullback and Europe to ramp up its defense spending prioritizing European companies,” Muharremi noted.
The region’s aerospace and defense sector has sharply outperformed broader markets since the beginning of the year, propelled by an emerging consensus that NATO’s decade-old defense spending target of 2% of GDP was inadequate and needed to be raised.
(Excerpt) Read more at morningstar.co.uk ...
TOPICS: Chit/Chat
KEYWORDS: ukraine
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To: marcusmaximus
Ferengi Rules of Acquisition:
1. War is good for business.
2. Peace is good for business....................
2 posted on 03/03/2025 6:18:13 AM PST by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
To: marcusmaximus
“as events in Washington DC signal deteriorating Western alliances.”
I think he means, “as it appears that Europe will stop leeching off the Americans for their defense”
I mean if a relationship therapist were to observe, they woul label this as one-sided
When has NATO ever said a word about our foreign invesion or for that matter what have they done about Russia invading Ukraine
3 posted on 03/03/2025 6:21:23 AM PST by stanne (Because they were mesmerized by Obama, the man for whom this was named, whose name they left out of )
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