European financial markets are experiencing a mixed session on Thursday. Investors are exercising caution ahead of the release of key US employment data, while the defense sector is experiencing a spectacular surge driven by announcements from President Donald Trump.
At the opening on Thursday, European markets were trading with slight variations, reflecting investors’ wait-and-see attitude ahead of the release of the monthly US employment report, expected on Friday. In Paris, the CAC 40 lost around 0.11%, the FTSE 100 in London fell 0.19% and the Dax in Frankfurt posted a slight gain of +0.17%.
Historic surge for defense stocks
Bucking this general trend, the European defense sector stood out with strong gains this morning. The Stoxx Europe Aerospace & Defense Index, which includes major European defense and aerospace groups such as Rheinmetall and Safran, rose by around 2% during the session to set a new all-time high.
This surge was triggered by Donald Trump‘s statements calling for a US military budget of $1.5 trillion for the following year. This announcement consequently stimulated investor appetite for stocks linked to armaments and aeronautics. Other winners following the announcement included BAE Systems shares, which gained around 6%, and Leonardo shares, which rose nearly 5%.
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