Ukraine-US rift, German defence fund talks boost arms makers

MTU Aero Engines AG

03/03/2025 07:09

** Shares in German defence companies rise between 3% and 21% in early Frankfurt trade after the Trump-Zelenskiy clash in the White House and a report on talks for a potential German defence fund

** A Reuters exclusive on Sunday said parties in talks to form Germany's new government are weighing a 400 billion euro ($416.32 billion) defence fund

** At a summit in London on Sunday, European leaders also agreed they must spend more on defence but did not provide details of their plan

** Hensoldt HAGG.DE, which provides sensor systems for the Eurofighter, is the top gainer with a 21% jump

** Leopard 2 tanks maker Rheinmetall RHMG.DE gains 15%, while MTU Aero Engines MTXGn.DE rises 2.5%

** Thyssenkrupp TKAG.DE, whose shares have gained 93% YTD, rises 6% in premarket

** Tank gearbox maker Renk R3NK.DE gains 14% and sits at the top of Germany's small-cap index .SDAXI

($1 = 0.9608 euros)

 (Reporting by Paolo Laudani)

 ((Paolo.laudani@thomsonreuters.com))