▸ European defence stocks surge after Trump’s remarks on Ukraine war
▸ Wall Street lower on Powell signal that further rate cuts were not guaranteed
▸ Dollar rallies but US government bonds sold by investors
European defence stocks rose yesterday after President Donald Trump said that Ukraine could win back all of its territory that has been seized by Russia.
Trump emphasised the need for support from Europe when he said on Tuesday that Ukraine should be able to return to its borders from before Russia's full-scale invasion in 2022.
European defence names rose as investors bet on more sector spending. In Frankfurt, Hensoldt rose 8 per cent and Rheinmetall climbed 3.5 per cent. BAE Systems rose 2.2 per cent in London and Thales climbed 2.4 per cent in Paris.
Defence stocks have been among the best performers in Europe this year, driving equity market returns as governments on the continent pledge higher defence spending.
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