The rally was led by German arms manufacturer Rheinmetall, which jumped 14% in Frankfurt, while UK-based BAE Systems soared 16% in London and Italy’s Leonardo climbed 10% in Milan. Rolls Royce was up 5.7%. The stock surge followed reports that Germany ...

Shares in BAE Systems, Rheinmetall and Leonardo all added to strong gains this year on Monday amid expectations of rising European defense spending.

Leonardo SpA has seven different business divisions, including Helicopters, Aeronautics, Electronics and Defense Systems. The firm is one of Italy's largest, with nearly 60,000 employees and a $27 billion market cap. The stock finished 2024 up more than 50% on the year, its share price has already gone from $13 to $23 in 2025.

European defence stocks have rocketed in value since 2020. Here's why they could continue outperforming the 'Magnificent Seven.' The post Defence stocks are soaring! Here’s why they could be better shares to buy than the ‘Magnificent Seven’ appeared first on The Motley Fool UK.

Europe’s defence spending is skyrocketing, kicking off a global arms race and positioning Aussie defence stocks to ride the wave.

We are living in the most momentous and dangerous of times. I do not need to describe the grave nature of the threats that we face," said Ursula von der Leyen.

The expectation of impending higher arms spending was one of the factors that led to the European aerospace and defense sector stock index to rise.

More market analysis has also noted that JPMorgan recently increased its price target for BAE Systems, reflecting a positive outlook on its future performance.

The prospect of a military spending boom by Germany unprecedented since the Cold War sent Europe's defence stocks soaring after Reuters reported the likely next government was mulling a fiscal sea change for Europe's biggest economy.

The WisdomTree Europe Defence Ucits ETF (WDEF) listed Tuesday on Deutsche Boerse Xetra and Borsa Italiana, and will list on the London Stock Exchange Wednesday. WisdomTree said it is the first ETF of its kind focused solely on European defense companies.

Europeans would need to ramp up military spending quickly, a notion that has set off a market rally, led by defense stocks.

Invezz.com - Shares of European defense companies surged on Monday as investors bet that governments across the continent would significantly ramp up military spending. Rolls Royce (LON:RR) was up 5.7%. The stock surge followed reports that Germany’s CDU ...