European defence stocks were among the rare gainers in a falling market on Thursday on bets of bigger spending after Russian forces invaded Ukraine in the biggest attack in Europe since World War Two.
Investors expect defence companies to benefit from rising geopolitical tensions, with European and U.S. defence contractors well positioned, especially if NATO member states boost spending. BAE said on Thursday that Russia’s invasion of Ukraine would place a sharper focus on security, anticipating growth over the coming years across all sectors, with cyber intelligence also becoming globally relevant.
Among other companies with defence exposure, shares in Ultra Electronics were little changed, while QinetiQ and Meggitt fell slightly but still outperformed the steep market falls. European shares fell almost 4%.