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European defense stocks soared as regional leaders pledged to take on a greater role in supporting Ukraine against Russia.
The market rally comes amid shifting geopolitical dynamics, with the three-year-old war set to enter a new phase following tensions between Ukrainian President Volodymyr Zelensky and former U.S. President Donald Trump.
Several European nations have reaffirmed their commitment to strengthening Ukraine’s defense capabilities, signaling increased investments in arms production and military aid.
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Analysts link the stock surge to growing expectations of higher defense spending across Europe, as governments seek to address potential gaps left by shifting U.S. policies.
The European defense sector, which has already seen considerable growth due to the prolonged conflict, experienced further gains as major arms manufacturers posted significant stock increases.
With the war evolving, European governments appear determined to take a more proactive role in Ukraine’s defense, a move that could reshape the region’s security landscape.
