European defence stocks soar after pledge of support for Ukraine
European defence stocks surged on Monday after European leaders reaffirmed their support for Ukraine over the weekend, boosting investor confidence in the sector.
Several European leaders convened to discuss security and the ongoing war in Ukraine, providing Kyiv with assurances of continued backing. The prospect of increased military spending has fuelled a rally in defence stocks.
At the opening bell, German arms manufacturer Rheinmetall was up 18 per cent, Swedish defence company Saab was up 10 per cent and French aerospace company Dassault Aviation was up 12 per cent.
Increased defence spending
The ongoing war in Ukraine and pledges by European nations to increase defence spending have resulted in full order books for defence companies and correspondingly higher share prices.
Rheinmetall, one of Europe's largest producers of land-based weapons, has seen its share price soar 67 per cent this year alone. Since Russia's invasion of Ukraine, the company's share value has increased eightfold.
© PHOTO AFP
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