European defense stocks have soared this year

European Commission President Ursula von der Leyen is out with an €800 billion ($842 billion) proposal, most of which would be spread over four years, to beef up Europe’s defense budget and provide “immediate” military support to Ukraine. This ReArm Europe Plan will likely be discussed at a crisis summit with EU leaders scheduled for tomorrow, with plans to discuss joint action on Ukraine and on Europe’s long-term security trajectory.

With the prospect of rising defense spending in Europe, the region’s Stoxx Europe aerospace and defense index closed 8% higher on Monday, marking its best session in five years. Double-digit percentage gains were also seen for companies like Germany’s security sensor company Hensoldt (22%), Italy-based Leonardo (16%), and French aircraft manufacturer Dassault Aviation (15%).

See the full article here.