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Tue, March 4, 2025

Europe's Defence Stocks Extend Rally as Trump Pauses Military Aid to Ukraine


Published on 2025-03-04 21:41:21 - Reuters
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  • An index of aerospace and defence companies was up 0.8% to new record high at 1224 GMT, an outlier in a sea of red, with region-wide STOXX 600 dropping 1.4%, as U.S. tariffs on Canada, Mexico and China took effect.

The article from MSN discusses the recent surge in European defense stocks, driven by former U.S. President Donald Trump's comments on pausing military aid to Ukraine. Trump's remarks, which suggested he would encourage Russia to act freely if NATO allies did not meet their defense spending commitments, have led to increased uncertainty about U.S. support for European security. This has prompted investors to turn towards European defense companies like BAE Systems, Rheinmetall, and Saab, whose stocks have seen significant gains. The rally in these stocks reflects broader geopolitical tensions and a potential shift in European defense strategy, with countries possibly looking to bolster their own military capabilities in light of reduced U.S. reliability. Additionally, the article notes that this trend is part of a longer-term increase in defense spending in Europe, spurred by the ongoing conflict in Ukraine and the need for enhanced security measures.

Read the Full Reuters Article at:
[ https://www.msn.com/en-us/money/markets/europes-defence-stocks-extend-rally-as-trump-pauses-military-aid-to-ukraine/ar-AA1AdJmH ]
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