LONDON – European stock markets were in negative territory at the opening bell on Thursday, but defense stocks rallied after President Donald Trump’s demands for more U.S. military spending.
pan-european Stocks 600 The stock was last down 0.4% at 12:50 p.m. (7:50 a.m. ET) in London.
Global markets have focused on rising geopolitical tensions this week after the United States ousted Venezuelan President Nicolás Maduro over the weekend and subsequently threatened to occupy Greenland.
Defense stocks rose as investors on Thursday after President Trump called for a 50% increase in U.S. military spending, putting the sector on track for a fifth consecutive day of gains. He is aiming for a $1.5 trillion budget in 2027, according to a TruthSocial post late Wednesday.
“After long and difficult negotiations with senators, congressmen, secretaries, and other political representatives, we have decided that in the interest of our nation, especially during these extremely difficult and dangerous times, the military budget for 2027 should be $1.5 trillion rather than $1 trillion,” he wrote.
“This will allow us to build the ‘army of our dreams’ to which we have long enjoyed the right, and more importantly, it will keep us safe and secure regardless of our adversaries.”
The Stoxx European Aerospace and Defense index rose 1.1%. Lenk 2.4% increase, leonardo The stock rose 2.5%, hitting a 52-week high. line metal They rose 1.4% each, a sharp increase compared to previous gains leading European benchmarks.
Defense names also increased across the Atlantic.
European oil stocks fell on Wednesday, extending their decline for a second day as investors reacted to speculation that U.S. companies could extract oil from Venezuela. blood pressure down 0.5%, shell Although it decreased by 2.7% Equinor It rose 0.1% in early afternoon trading.
price of March Brent Crude Oil Futures It last traded at $60.95, rebounding from below $60 on Wednesday.
Wall Street closed lower on Wednesday, with defense stocks falling after President Trump said he would “not allow” defense companies to pay dividends or buy back stock until they address grievances about the defense industry, including executive pay and production issues.
European markets have been on high alert this week after President Trump threatened that the United States could take over Denmark’s semi-autonomous territory of Greenland by military force.
Regional leaders have pushed back against President Trump’s takeover goals, and U.S. Secretary of State Marco Rubio is scheduled to meet with Danish officials next week. Rubio has downplayed the threat of invasion, saying Trump wants to “buy” Greenland.
Asia-Pacific markets traded mixedly overnight, but US stock futures remained close to flat.
Investors this week await the Supreme Court’s opinion on the legality of President Trump’s tariffs, expected on Friday. This ruling could lead to potential fluctuations in the market.
There are no major earnings or data releases scheduled for Thursday.
