UK Defense Stocks Surge Amid Ukraine Crisis
BAE Systems, the UK's largest defense contractor, saw its shares rise by 6% following a statement from Sir Keir Starmer expressing willingness to deploy British peacekeeping troops in Ukraine. This surge added £2 billion to the company's market capitalization, bringing its value close to £40 billion.
Rolls-Royce, another major UK military contractor, also witnessed a rise in demand, with shares increasing by up to 1.5%. The rally was driven by concerns over escalating tensions in Ukraine after former US President Donald Trump suggested a separate peace deal with Russia.
Prime Minister Starmer's statement on the possibility of deploying British troops was prompted by fears over President Trump's plans. An emergency summit in Paris brought together European leaders to discuss the situation.
BAE Systems, which will release its annual results on Wednesday, is a global arms manufacturer and the largest in Europe. Its significant role in Ukraine includes providing support and training to the Ukrainian military. The company is also responsible for programs related to fighter aircraft, submarines, and artillery.
Other defense contractors also benefited from the rally. QinetiQ Group shares rose 3%, while Senior, a military sensors manufacturer, saw a 2.4% increase.