European defense stocks plummeted on Tuesday as traders assessed the outcome of talks between US President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and European leaders at the White House. The Stoxx Europe Aerospace and Defense index fell 2.58%, with major companies such as Leonardo, Hensoldt, and Renk experiencing significant declines.
The positive market sentiment was overshadowed by Trump’s comments during the meeting, which included a planned trilateral meeting between himself, Zelenskyy, and Russian President Vladimir Putin. Zelenskyy expressed hope that security guarantees for Ukraine would be formalized within the next week to 10 days.
Despite this, European markets still managed to gain 0.73% overall, with the UK’s FTSE 100 reaching a record high of 9189.22 points. Analysts are now focusing on Wednesday’s inflation print in the UK, where economists expect an annual rate of price rises hitting 3.7%.
Source: https://www.cnbc.com/2025/08/19/european-markets-on-aug-19-stoxx-600-ftse-dax-trump-talks-fed.html