European Defense Stocks Surge on Military Spending

European defense company stocks saw significant gains amid heightened military spending by European nations, driven by fears over the United States' wavering support for Ukraine. The surge follows a meeting in London where European leaders, including British Prime Minister Keir Starmer, pledged increased support for Ukraine. The meeting was marked by tensions following a contentious encounter between US President Trump and Ukrainian President Zelenskyy, casting doubt on US commitment to Ukraine. BAE Systems, Rheinmetall, and Thales experienced double-digit percentage increases, with BAE Systems rising by up to 23% on Tradegate. European leaders have expressed the need to bolster their defense capabilities. Additionally, European natural gas prices rose as optimism for a cease-fire with Russia waned after the US-Ukraine diplomatic fallout.