On Monday, November 24, European defense company stocks, such as Rheinmetall, reached a nearly two-month low amid a slowdown in growth. This also happened against the backdrop of signs of progress in negotiations to secure support for a US-backed peace plan for Ukraine. This is reported by UNN with reference to Bloomberg.
Details
Some investors increasingly believe that the conflict will be resolved in the coming months after steps taken by the Trump administration to appease Russia
At the same time, the ongoing Russian-Ukrainian war and the current US administration's attitude towards NATO have led to a constant change in Europe's approach to defense spending, which will not change even if hostilities end.
According to estimates by Mediobanca analysts led by Alessandro Pozzi, a peace agreement in Ukraine is unlikely to be concluded before the end of 2026. Defense spending in Europe will continue to grow, experts believe.
Recall
The Budget Committee of the German Bundestag approved the federal budget for 2026, increasing aid to Ukraine to 11.5 billion euros. These funds are intended for artillery, drones, armored vehicles, and the replacement of Patriot missile systems.