Defence stocks in Europe at all-time high after Trump calls for higher US defence budget

RENK AG

08/01/2026 08:26

Jan 8 (Reuters) - Shares in European arms makers rose on Thursday to a fresh record high after President Donald Trump called for higher U.S. defence spending.

Trump said on Wednesday that after negotiations with U.S. senators and political representatives, he has determined that the military budget for next year should be $1.5 trillion.

An index of aerospace and defence companies .SXPARO was up around 2% by 0816 GMT, hitting a new all-time high.

Britain's BAE Systems BAES.L rose around 6% while Chemring CHG.L was 4% higher, Italy's Leonardo moved up some 5%.

Germany's Rheinmetall RHMG.DE, Renk R3NK.DE each rose around 3%.

Up, up and away https://reut.rs/4ocnoIx

 (Reporting by Anna Pruchnicka, editing by Alun John)

 ((anna.pruchnicka@thomsonreuters.com; +48 58 769 65 14;))