German arms maker shares jump on hopes for higher defence spending

MTU Aero Engines AG

03/03/2025 07:53

March 3 (Reuters) - Shares in German arms makers were set to open sharply higher on Monday boosted by the prospect of higher defence spending after European leaders agreed to draw up a peace plan for Ukraine.

At a summit in London on Sunday, just two days after Ukrainian President Volodymyr Zelenskiy clashed with U.S. President Donald Trump, European leaders agreed they must spend more on defence.

Separately, Reuters reported that parties in talks to form Germany's new government are weighing setting up a defence fund.

Hensoldt HAGG.DE, which provides sensor systems for the Eurofighter, jumped 22% in early trade while Leopard 2 tanks maker Rheinmetall RHMG.DE gained 19%.

Thyssenkrupp TKAG.DE, MTU Aero Engines MTXGn.DE and Renk R3NK.DE were up between 3% and 16%.

 (Reporting by Paolo Laudani, Anna Pruchnicka in Gdansk, editing by Alun John)

 ((Paolo.Laudani@thomsonreuters.com;))