Peace talks trigger defence stock slumps

After President Trump met with Presidents Vladimir Putin and Volodymyr Zelenskyy separately, European defence stocks dropped amid reports of a potential ceasefire and US-led agreements. Signs of de-escalation have applied pressure to profits, but the sector’s long-term drivers are still in place. Defence budgets are set to grow over the next decade, as Europe looks to address years of underinvestment. The EU is also insisting that the majority of rearmament spending should remain in Europe, which will boost companies. NATO’s GDP spending goals and the need for strong deterrence will continue...