Weapons companies’ share prices have risen across Europe and the UK measure stock index has reached a record high in the midst of discussions of increased defense spending.
The FTSE 100 index of the most valuable companies on the London Stock Exchange has a level that has never been seen before, as arms maker Bae Systems rose to 17.5% on Monday to its record height.
The increase in the share price added about £ 5.92bn to the total value of the company on Monday from the closing on Friday afternoon.
Defense and aviation firm Rolls-Royce Holdings, which also increased the FTSE 100 to a never-to-level level, were also 6%at one point on Monday.
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Elsewhere on the London Stock Exchange, the larger FTSE 250 index that exists more UK businesses is also increased by the expected growth in weapon spending.
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The biggest takeoff was the defense technology business Qinetiq and Babcock International, defensive support, which rose by 10.3% and 9.3% respectively.
It was not just British weapons companies that gave a lifting, in Europe shares in such businesses were on the point.
A Europa-wide phenomenon
Shares of Germany’s largest defense company Rheinmetall jumped 18%, while Leonardo of Italy rose by 15%.
Expectations of more defense spending rose afterwards European leaders came together in London to discuss greater funding for Ukraine in his fight against Russia and a possible EU peace agreement.
Why?
Prime Minister Sir Keir Starmer on Sunday announced a loan to Ukraine and a £ 1.6bn agreement to a Belfast factory to provide missiles for the country’s fight against Russia.
Mr. Starmer suggested A coalition of European and other allies can defend a potential agreement for Ukraine to “guarantee the peace” and increase military spending.
He made the comments on a top of EU leaders, along with Canada and Turkey, who were planned for more than a week, but urgently to the Disastrous meeting and diplomatic collapse between President Donald Trump and Volodymyr Zelenskyy Friday at the White House.
The UK has already announced that would increase military spending Up to 2.5% of GDP – a measure of everything produced in the economy – by 2027.
Chancellor Rachel Reeves also announced an extra £ 2.26bn for the Ukrainian war effort, funded by the profits made Of hundreds of billions of dollars’ Russian sovereign assets frozen since the start of the full -scale war in February 2022.
