The European defense shares the jump when the rally rally meets at the rhythm

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The European defense sector extended an abrasing demonstration on Monday and the euro increased as investors increased their bets that governments from the entire continent will have to boost military spending and assume more of the burden for their safety.

The shares in Rheinmetall, the largest defense company in Germany, increased by 14 percent, while Leonardo rose 15.4 percent in Milan. Such -quoted in Paris increased 15 percent, BAE systems earned 14.3 percent and Sweden Saab increased by 11.3 percent.

He Stoxx Europe Aeroospace and Defense Index It rose 8.4 percent, putting it on its way to its greater gain of a day since November 2020, while Dax of Germany increased to 3.3 percent, in progress for its greater gain in more than two years. The European government bonds sold expectations of greater expense.

“There is clearly the need for timbre (defense) expenses and an appetite to finance this from a perspective of investors,” said Guy Miller, Zurich Market Chief Strata.

The movements follow the summit of Sunday leaders on Sunday in London, since the United Kingdom and France lead attempts to save the hopes of a peace agreement in Ukraine after the explosive row of the president of the United States, with the Ukrainian President Volodymyr Zelenskyy in the Oval office on Friday.

European leaders are under growing pressure to increase defense spending after the Trump administration refused to offer security guarantees of the United States, which are widely considered as a necessary deterrence for any future Russian aggression.

The yields of the eurozone bonds increased, and the German bunchmach to 10 years produces an increase of 0.12 percentage points by 2.52 percent. The yields move inversely to prices.

The expectations of investors of a greater issuance have promoted an end to the performance curves in recent weeks. The propagation of the German debt at 10 years during its two -year equivalent reached up to 0.43 percentage points on Monday, its highest level in more than two years.

The euro rose 1.2 percent to operate to $ 1,049 after the reports that Zelenskyy on Monday had expressed his willingness to meet Trump again for “serious conversations” and helped by Eurozone inflation data a little stronger than expected.

The profits of the actions of Monday are added to a record race for a defense sector that was rejected by many European investors before the large -scale invasion of Russia of Ukraine in 2022.

They helped boost a broader rally in European markets. Stoxx 600 increased by 1 percent, while the FTSE 100 Hit in London won 0.9 percent, helped by BAE profits, with both indices reaching new new records.

In the US, defense actions left behind the global demonstration of the European sector. Actions in L3harris Technologies and Lockheed Martin increased only 0.7 percent and 1.2 % respectively in New York.

The European Defense and Aerospace Index of Stoxx has risen more than 30 percent this year, since the governments of the region have indicated that they will spend more on security due to the greatest realignment of the foreign policy of the United States since World War II.

Policy formulators are looking for several options to increase spending, including the creation of a European Rearme Bank to take advantage of the European Savings Group that will be modeled in the European Bank for reconstruction and development.

Investors are convinced that “Europe has few options to increase defense spending,” said Mohit Kumar, a Jefferies economist.

The order books of some of the European defense contractors had already reached the maximum record following the 2022 large -scale invasion of Ukraine.

The profits for the sector extended beyond the largest contractors in the region on Monday.

The movements also occur when the Chancellor of Germany, Friedrich Merz, seeks to hurry through a multimillionaire supervision of euro to the country’s defense budget. He wants the approval of the Social Democratic Party of the Central Left to use the outgoing Bundestag to vote through the constitutional change required to boost military spending by more than € 100 billion.

“A paradigm shift seems to be taking place in Germany,” said Robin Winkler, an economist at Deutsche Bank.

However, some analysts warned that the initial market reaction was a section since European fiscal policy tended to proceed slowly, while the proposed expense was extended for several years.

“It is likely that the increase in defense spending is slow and stable, instead of the Big Bang market markets,” said Tomasz Wieladek, economist from the T Rowe Price asset manager.

Additional Ray Douglas reports