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The European Stock Exchange is experiencing a spectacular flight that bears the defensive sector. Investors in the face of geopolitical uncertainties respond with vitality. What consequences for markets?
European financial markets start a week in a hurry
This morning Stock market indices View a good procedure:
- +0.4 % in London,
- +0.6 % in Paris,
- +1 % in Frankfurt.
This stock market It is largely worn by the development of the defensive sector that is experiencing an impressive flight. Specifically, this focus is explained by tense geopolitical dynamics. We refer to a stormy meeting between Donald Trump and Volodymyr Zelsky.
Since then, uncertainty has grown for US support for Ukraine. European powers in the face of this risk have reaffirmed their obligation. They announced a significant increase in their military budgets.
Result: stock market shares The large European defense companies jump while their American counterparts fall.
Rheinmetall explodes, Wall Street Plunges: New Agreement on the stock market
The big winner of this situation is Rheinmetall, a German defensive giant. Its market capitalization increased by 40 %. This magnificent increase illustrates Investors’ trust in Europe To compensate the potential of the United States in military support in Ukraine.
In the United States, on the other hand, the prospects are darker. The action of the six largest US defense companies since Donald Trump’s return have dropped by 4 % to the White House. Reason mentioned? The first Pentagon budget drop. Wall Street takes a blow and hits A clear difference with European momentum.
Inflation, PMI and Economic Trends: Field favorable to the European Stock Exchange?
The European economy sends other encouraging signals.
- L ‘PMI production index It reached two years higher from the euro area in February. This shows the slowdown of production contractions.
- L ‘inflation He slowed down slightly. In February it increased from 2.5 % in January to 2.4 %.
On the other hand, the United Kingdom shows signs of weakness. In fact, the production sector is for the fifth consecutive month. This divergence emphasizes the contrast between a European scholarship in the middle of a bull trend And more insecure situations across the channel.
With the rise of the defense sector and economic indicators in improvement, it therefore seems that the European stock exchange of securities is in good position to continue its output. For investors in the stock market, this trend is mainly the opportunity to overlook. Jump on the financial markets and current volatility could actually open interesting perspectives to diversify portfolio.
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My name is Ariela and I’m 31 years old. I have been in the area of writing a website for 7 years. I have discovered discovery and cryptocurrency for only a few years. But it is a universe that interests me a lot. And subjects treated in the platform allow me to learn more. In my free time, the singer also cultivates a great passion for music and reading (and animals!)
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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.