Market Reaction to US-EU Arms Deal

European defense stocks experienced a notable decline following the announcement of a new trade framework between the United States and the European Union. This deal, as highlighted by President Donald Trump, is expected to significantly increase the bloc's purchases of American weaponry.

Impact on Major Defense Companies

Among the most affected were Germany's Rheinmetall AG and Hensoldt AG, with shares dropping by 1.93% and 3.61%, respectively. France's Thales Group and Italy's Leonardo SpA also saw significant declines, losing 3.42% and 1.64% in their share values.

Looking Ahead

The market's reaction underscores the potential shifts in the global defense industry's dynamics, as the US and EU move towards closer trade and defense cooperation.