EU defence stocks fall, analyst points to investors moving to cyclical stocks

RENK AG

23/04/2025 09:20

** European defence companies fall on Wednesday, with an analyst pointing to investors' shift from defensive stocks to cyclical stocks

** "With the prospect of a global trade war being averted, investors are shifting from defensive stocks to cyclical stocks. This sector rotation is weighing on defense stocks, which have risen sharply so far this year," Stefan Maichl, analyst at LBBW, writes

** Stefan Maich adds that signals of a ceasefire in Ukraine are causing uncertainty regarding growth prospects in the European defence sector

** Germany's Rheinmetall RHMG.DE Hensoldt HAGG.DE and Renk R3NK.DE fall 2.3-7%

** Swedish SAAB SAABb.ST and Norwegian Kongsberg Gruppen KOG.OL are down 3-4%

** French-based Dassault Aviation AM.PA and Thales TCFP.PA fall 2.8%

 (Reporting by Tristan Veyet)

 ((Tristan.chabba@thomsonreuters.com))