European defence stocks surged on Monday after European leaders assured Ukraine of their support over the weekend.
Several European leaders met this weekend to discuss security and the ongoing war in Ukraine. Kiev was assured of continued assistance.
The prospect of increased military spending boosted defence stocks on Monday. German arms manufacturer Rheinmetall rose by 18 percent at the opening, Swedish defence company Saab gained 10 percent, and French aircraft maker Dassault Aviation increased by 12 percent.
The war in Ukraine and the plans of European countries to boost defence spending are causing a surge in orders for defence companies. Their stock prices are rising accordingly.
Rheinmetall, one of Europe’s largest producers of land military equipment, has seen its share price rise by 67 percent this year alone. Since the Russian invasion of Ukraine, its stock value has increased eightfold.
