Defence Stocks on the Rise – A European Market’s Wild Ride
When Europe’s anxieties about a showdown with Russia grow, investors react on autopilot. Saxo Capital’s latest data shows trading in defence‑sector shares has spiked by a staggering 148% compared with last year.
Why the Market Is Buzzing
- Putin’s new term – Russia’s president secured a fifth stint, stoking fears across the continent.
- Trump’s NATO tease – The former president hinted he might cut U.S. NATO spending if reelected, nudging European nations to re‑evaluate their budgets.
- Recent cyber‑incidents – The UK’s defence secretary’s plane was hacked, triggering an immediate spike in domestic defence spending.
The Denmark Twist
Prime Minister Mette Frederiksen urged both retail traders and companies to “back up” the nation’s defence industry. With public funding stretched thin, she’s calling for a private‑sector arm‑supply boost. The move has sent German defence firm Rheinmetall and its subsidiaries into a buying frenzy.
Expert Take‑aways
- Oscar Bernhardt (Saxo strategists) says: “The defence sector once hovered alongside oil and tobacco—an unattractive niche. Now, with NATO’s 2% target looming, Europe’s defense spending is a gold mine for investors.”
- Peter Garnry (Head of Equity Strategy) adds: “Rheinmetall’s recent performance outstrips even the most optimistic estimates. With Trump’s hard line on ‘free‑riding’ NATO members, the alarm bells are ringing loud across the EU.”
- Both experts predict that defence stocks will continue their upward trajectory throughout the year.
What This Means for You
If you’re eyeing a portfolio boost, consider diversifying into defence companies. With geopolitical tensions echoing and governments scrambling for security, the market is primed for a steady ascent.
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