European Defence Stocks Fall on Talk of Ukraine Peace Plan7 Feb 2025 10:46
rugs -
i rerprodiuce below in quotation marks a news article on the london and south east page for bae systems from 1:47 pm yesterday https://www.lse.co.uk/news/ba./european-defence-stocks-fall-on-talk-of-ukraine-peace-plan-u39vyzro1q08b4d.html it suggests why chg, qq, ba. and other defence stocks shares fell yesterday. i have ba.
at the time i type this ba. is up 0.9%, qq 0.6% up and chg unchanged. yesterday's fall is very surprising because huge amount of equipment and munitions used by ukraine needs replacing and i'd read that european factories can't produce stuff fast enough to re-stock at the rate it's been used. also, nato must increase defence expenditure due to russian and other global threats and donald trump's objection to the amount by which usa had subsidised other nato countries.
"milan, feb 6 (reuters) - shares in some european defence companies fell sharply on thursday, with traders citing growing talk over a possible ukraine peace plan ahead of a meeting between russian president vladimir putin and u.s. president donald trump.
a gauge of aerospace and defence stocks turned suddenly negative after reuters reported, citing russian state news agency ria, that preparations for a meeting between putin and trump were at an "advanced stage".
ria cited leonid ****sky, head of the state duma's international affairs committee, as saying the meeting could take place in february or march.
"if the putin-trump meeting is imminent, it's logical to assume that there will be pressure to bring a swift resolution to the conflict with ukraine," said carlo franchini, head of institutional clients at banca ifigest in milan.
trump and putin have both said they are keen to hold a meeting whose agenda could include trump's stated aim to bring a swift end to the ukraine war.
saab ab, rheinmetall, hensoldt , leonardo, thales and bae systems were last down between 1 and almost 4%.
their declines pushed the stoxx aerospace and defence index , which has more than doubled since russia invaded ukraine in february 2022, down as much as 1.4% from a record high hit earlier in the session.
the rouble currency strengthened against the dollar and even more so against the chinese yuan on thursday, buoyed up by talk of possible talk between moscow and washington.
the broader stoxx 600 was up 0.8%.
analysts have said a ceasefire in ukraine could trigger a selloff in the sector, but investors remain upbeat about the defence spending outlook in nato countries.
franchini said declines in defence stocks could create "buying opportunities". "let's not forget that trump wants nato members to increase defence spending to 5% of gdp," he said.
u.s. allies expect trump's administration to present a plan to end russia's war on ukraine at the munich security conference in germany next week, bloomberg reported on wednesday, citing people familiar with the matter. (reporting by danilo masoni and samuel indyk, editing by alun john and a