European Defense Stocks Extended Gains Amid Broader Weekly Market Gains

Bridgette Randall
23 May, 2025
London

European stock market indexes advanced and halted a two-slide, and the euro hovered near recent highs amid the elevated demand for euro-denominated securities. 

Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher and booked gains amid demand for defense industry-linked stocks. 

Market sentiment stabilized after the U.S. and Europe signaled ongoing discussions about trade negotiations, but officials cited slow progress. 

Moreover, European officials are looking to impose tariffs or sales tax on direct shipments from China using the postal system as package arrivals continue to soar. 

In 2024, about 4.6 billion small packages worth less than €150 enter the European Union; about 91% of these packages arrive from China.  

France alone received 800 million low-value small packages, and the public accounts minister, Amelie de Montchalin, said France plans to impose a small handling fee to process these packages. 

However, European Union ministers are looking to finalize an agreement for all member states as customs and border control agencies step up checks for counterfeit goods and security risks. 

 

Europe Indexes and Yields

The DAX index increased by 0.2% to 24,057.19, the CAC-40 index edged higher 0.3% to 7,884.52, and the FTSE 100 index advanced 0.4% to 8,775.17.

For the week, the DAX advanced 1.7%, the CAC-40 gained 0.2%, and the FTSE 100 index added 1%. 

The yield on 10-year German bonds inched lower to 2.61%, French bonds decreased to 3.29%, the UK gilts moved down to 4.72%, and Italian bonds edged lower to 3.63%.

The euro increased to $1.13; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 82.60 Swiss cents.

Brent crude decreased $0.40 to $64.04 a barrel, and the Dutch TTF natural gas was lower by €0.06 to €36.30 per MWh.

 

Europe Stock Movers

Siemens AG increased 0.7% to €218.65, MTU Aero Engines AG advanced 1.4% to €347.30, and Rheinmetall AG gained 0.5% to €1,779.50.

Dassault Aviation decreased 0.3% to €310.20, Safran jumped 0.5% to €261.90, Airbus SE increased 0.5% to €162.08, BAE Systems plc inched up 0.4% to 1,849.50 pence, and Rolls Royce Holdings PLC advanced 1.5% to 855.40 pence. 

Rolls Royce traded at a new intraday high amid expectations of new orders as the UK and France ramp up spending for military hardware in support of Ukraine.