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European defense stocks slide as Trump-Zelenskyy meeting raises hopes of peace for Ukraine
Tuesday, 19 August 2025 14:27 WIB | MARKET UPDATE |Saham EropaStoxx Europe 600

European stocks edged higher on Tuesday as global markets reacted positively to the outcome of talks between U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskyy and European leaders at the White House on Monday.

The pan-European Stoxx 600 was 0.1% higher by 8:11 a.m. in London (3:11 a.m. ET), with most sectors in positive territory.

Defense stocks were among the worst performers in the index during early trade, as investors digested the news of talks in Washington. The Stoxx Europe Aerospace and Defense index was last seen trading 0.4% lower.

German tank parts manufacturer Renk was 3.6% lower, Sweden's Saab was down 3.3%, and Italian defense giant Leonardo shed 2.9%.

At the closely watched talks on Monday, Trump said peace negotiations can take place while both countries are still fighting, dropping his earlier calls for a ceasefire. He also said security guarantees for Ukraine would be "provided" by European countries with "coordination with the U.S."

Zelenskyy said a package of coveted security guarantees for Ukraine — expected to include a massive purchase of American weapons — would be "formalized on paper within the next week to 10 days."

The U.S. president also said a meeting between Russian President Vladimir Putin and Zelenskyy is being planned, to be followed by a trilateral meeting which will include Trump.

Source: CNBC

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