US President Donald Trump’s announcement on Ukraine has sent shockwaves through the defense industry, with security-related stocks experiencing significant gains. Investors are piling into defense shares, driving up sales of companies like German Rheinmetall AG and South Korea’s Hanwha Aerospace Co.
The MSCI World Index shows that rheinmetall AG has been the best-performer this year, with investors expecting increased military spending. The surge in demand has also affected Asian markets, where companies such as Hanwha Ocean Co. have seen their stock prices rise by over 100% to outperform regional peers.
The shift in focus towards European defense is driven by Trump’s statements, which suggest that Europe should take responsibility for its own security rather than relying on the US for protection. This new dynamic has sparked a surge in demand for defense stocks, with investors betting on increased military spending and contracts.
Source: https://www.bloomberg.com/news/articles/2025-03-04/trump-s-ukraine-pivot-fuels-100-gains-in-world-s-defense-stocks