Catenaa, Monday, February 17, 2025 – European shares led by defence stocks rose to record highs on Monday, as the top political leaders of the region called for an emergency summit on the Ukraine war amid growing U.S. calls to boost military spending for security.
The pan-European STOXX 600 index jumped as high as 0.4%, as a gauge of defence and aerospace stocks surged over 3% to lifetime peaks, having already more than doubled in value since Russia invaded Ukraine three years ago.
French President Emmanuel Macron will host an emergency summit on Ukraine on Monday after U.S. officials suggested Europe would have no role in any talks this week in Saudi Arabia aimed at ending the conflict.
U.S. under President Donald Trump has insisted that the European allies of NATO should increase their budget spending on defence which has caused the surge in defence stocks.
Shares in top defence companies soared, with German arms maker Rheinmetall rising as much as 11% to a new record high, while Sweden’s Saab AB and Britain’s BAE Systems gained 11% and 6%, respectively.
Also, Italy’s Leonardo and France’s Thales also saw significant gains, with both rising more than 5%.
Bloomberg Economics estimates developments have cemented the view that debt sales will need to increase as European nations shoulder the cost of a lasting peace deal between Ukraine and Russia. Upgrading defense and protecting Ukraine may cost Europe’s major powers an additional $3.1 trillion over 10 years
European stocks were also buoyed by improved sentiment over China, a key export market, where a meeting between President Xi Jinping and business figures including e-commerce icon Jack Ma raised hopes that authorities’ years-long crackdown on the private sector is ending.
