"Profit-taking after a strong run", European defence stocks fall after Trump-Zelenskiy meeting fuels peace talks hopes

RENK AG

19/08/2025 08:31

** European defence stocks fall after the meeting between Zelenskiy and Trump at the White House raised prospects on peace talks

** U.S. President Donald Trump told President Volodymyr Zelenskiy that the United States would help guarantee Ukraine's security in any deal to end Russia's war there

** STOXX aerospace and defence index .SXPARO falls 1.3%, which has gained 53.3% YTD including today's session

** "There's been some profit-taking after a strong run, and the sector is sensitive to shifts in sentiment around peace prospects," Marcus Gavelli from Pareto Securities says

** "The Zelenskiy-Trump meeting may have added to speculation of a softer stance on the Ukraine conflict, but I'd see today's drop more as a short term reaction than a change in fundamentals," Gavelli adds

** Germany's Rheinmetall RHMG.DE, Hensoldt HAGG.DE and Renk R3NK.DE fall 3.1%, 3.9% and 5.0%, respectively

** France's Thales TCFP.PA and Sweden's SAAB SAABb.ST slide between 2.1% and 2.5%

** Norway's Kongsberg KOG.OL and Italy's Leonardo LDOF.MI are down 2.8%-2.6%

** Rheinmetall and Renk hits the bottom of blue-chip .GDAXI and mid-cap .MDAXI indexes, respectively

 (Reporting by Ozan Ergenay)

 ((ozan.ergenay@thomsonreuters.com))