European defense stocks were rising in early morning trade, after White House officials. officials downplayed the prospects of a ceasefire deal in Ukraine being agreed at a meeting between U.S. President Donald Trump and Russia President Vladimir Putin on Friday.
In London, Babcock International advanced 1.9%, Rolls-Royce rose 1.6% and BAE Systems increased 1.6%. In Paris, Airbus was up 1.3%, Dassault Aviation rose 1.1% and Thales was up 1%. Swedish defense group Saab gained 1.15%. German defense groups Rheinmetall and Hensoldt rose more moderately, at 0.6% and 0.8% respectively. Meanwhile, Italy’s Leonardo advanceds 0.9%.
Trump warned there would be “very severe consequences” if Putin didn’t agree to a ceasefire agreement with Ukraine, and floated the possibility of a second meeting afterward that could potentially involve Ukraine’s President Volodymyr Zelensky.
