German defence stocks fall as Merz fails to be elected chancellor

RENK AG

06/05/2025 10:45

** Shares of German defence firms are in the negative territory after German conservative leader Friedrich Merz failed to garner the parliamentary majority needed to become chancellor

** Top fallers include Thyssenkrupp TKAG.DE, Hensoldt HAGG.DE and Renk R3NK.DE, all down between 3% and 4%; the first two extend losses on the news, while Renk turns negative

** The broader index of European defence stocks .SXPARO is down 2%

** After the February election, Merz and the Social Democrats had announced a 500 billion euro ($566.20 billion) fund for infrastructure and sweeping changes to borrowing rules to bolster defence and revive growth

($1 = 0.8831 euros)

 (Reporting by Paolo Laudani)

 ((Paolo.laudani@thomsonreuters.com))