European defense stocks fell Monday morning as U.S. President Donald Trump urged Ukraine to accept a peace deal with Russia.
In Germany, Frankfurt-listed Renk fells 4.4%, Rheinmetall lost 4% and Hensoldt dropped 3.2%. In France, Paris-listed Thales decreased 2.4% while Dassault Aviation fell 2.4%. British aerospace and defense group BAE Systems decreased 1.2%, while Chemring Group lost 1.8%. Swedish arms maker Saab went down 3.1%, Italy’s Leonardo dropped 2% and Spain’s Indra Sistemas fell 3.6%.
Deutsche Bank analysts said the most significant geopolitical development this week will be Ukraine’s response to the U.S. ultimatum to accept the 28-point peace plan agreed with Russia, set for before Thanksgiving on Thursday, although the U.S. seems to have signaled over the weekend there is some room for negotiation.