Monday saw a rise in European markets due to a spike in defence stocks after regional leaders held security talks that centred on higher military spending.
By 10:55 a.m. in London, the regional Stoxx 600 index was up 0.59% despite some volatility. Interestingly, the Stoxx Europe aerospace and defence index saw its best performance in five years, rising by almost 6%.
Following price target upgrades by JP Morgan, Germany’s Rheinmetall, which increased 10.8%, and Britain’s BAE Systems, which increased 12.8%, were among the major gainers. Among the top performers were Saab of Sweden, Leonardo of Italy, and Thales of France.
Furthermore, Rolls-Royce, which operates in both commercial and defence aerospace, increased 5.3% following the recent dividend reinstatement.
Source (CNBC)
