European Defense Stocks Slide Amid Ukraine Peace Talks
European defense stocks took a hit on Monday, December 29, 2025, as investors weighed the outcome of the Trump-Zelenskiy meeting. The defense sector was under pressure, with Leonardo falling 4% and Rheinmetall slipping 2%.
European Markets Update
European stocks started the last trading week of the year in flat territory. However, the defense sector was not immune to the market's volatility. The Stoxx 600, a benchmark index for European stocks, was down 0.5% at 09:08 UTC.
Trump-Zelenskiy Meeting
The meeting between Trump and Zelenskiy has sparked concerns about the future of Ukraine's peace talks. The two leaders discussed several issues, including the conflict in eastern Ukraine and the potential for a ceasefire. However, the details of their conversation remain unclear.
Market Reaction
The market's reaction to the meeting has been mixed. Some investors are optimistic about the potential for a peace deal, while others are more cautious. The price of oil has risen as investors weigh the outcome of the meeting.
Defense Stocks
The defense sector has been under pressure in recent days, with several stocks falling in value. Leonardo, a leading defense contractor, fell 4% on Monday, while Rheinmetall, another major defense player, slipped 2%.
Conclusion
The outcome of the Trump-Zelenskiy meeting remains uncertain, and the market's reaction will likely continue to be volatile. Investors should remain cautious and keep a close eye on developments in the defense sector.
Sources
[2] European defense stocks slide amid Ukraine peace talks; Leonardo falls 4%, Rheinmetall slips 2%