NOTUS » Trump’s rhetoric on European defence spending is stressing the strength of partnerships with NATO countries, two European defence officials told NOTUS. As allies across the Atlantic continue to support the war in Ukraine, the looming threat of Russia and a perception of dwindling support from Washington have started to show financially.
“European defence stocks have just been on a tear at the start of this year, given all the news that’s coming out of NATO,” said Ido Caspi, a research analyst for the New York-based investment firm Global X. The firm’s defence technology exchange-traded fund passively follows the global market, and European defence companies have gained significant ground in the 87 days since Trump took office.
“A company like Rheinmetall, or a company like Thales or Leonardo, a lot of those companies have just found their way to the top of the portfolio just because their performance has been so strong,” Caspi said.
Companies in the U.S. aren’t showing the cracks just yet. As much as 60% of European defence spending is in the U.S.
