Defense stocks fall as the global market sales deepen

On Monday, European defense giants declined sharply, increasing recent losses when investors are fighting a wide and heavy downturn.

US president Donald Trump showed no signs of release of its aggressive trade policy after deployment sweep new tariffs Last week, saying that “sometimes you need to take medication.”

American stock markets fell sharply The second day in a row on Friday, with all three major indexes drops more than 5% as part of a Global section. Us Futures on the stock were the lower morning on Monday, and the sale on the track is stored.

European Protection Shares that have In recent months has grown Among the regional pressure to strategic independence were Among the worst performers Monday.

German weapon manufacturer Reinmetall 10.5% below at about 10:38 am in London (5:38 AM ET), disassembling some of its losses after falling as much as 27% shortly after the open. According to Reuters, the company was briefly on the way to its worst record.

Stocks of the German defense giant Thyssenkrupp fell on 10.2%, Germany Color group traded by 7.6% below, and France Chunk 7.1%collapsed. Swedish Defense Manufacturer Sab The last time was spotted 5.3%while Italy Leonard traded almost 9% lower.

State, stock Lockheed Martin. Northrop Grumman and Total dynamics Everyone was seen 4% below in the bidding in front of the markets.

Ben Hellan, Head of Aerospace and Defense Studies EMEA in the Bank of America, said the tariff influence on European defense shares is likely to be “quite small”. He added that the current level of stock prices is a “great opportunity” for investors.

“What we’ve seen in Europe now is what we have seen this change in thinking, and that we now have visibility. Now we have five -10 years of growth when we are moving up to 3% of GDP,” said Heelan CNBC “Squawk Box Europe“Monday.

“The next big Datapoint will be Q1 results if I think we will receive a lot of comments from companies about opportunities and reviews,” he added.

His comments come when defense costs look sample in Europe following the following Pressure on the Trump gainclaiming that allies exceed the US for its own security.

In Germany legislators have passed Historical debt reform. promised a hike for the cost of the UK national defense.

The European Union also made plans Mobilization up to 800 billion euros ($ 862.2 billion) to reinforce regional safety.

Asking his reaction to the fall of Rheinmetall’s stock prices on Monday, the Bank of America said, “What you see today is just a terrible impact of the sector that has very much loved from customers, especially in the last three or six months.”

The deputy refers to when hedge funds significantly reduce their overall impact on a particular asset market.

White House imposed a separate 25% duty Foreign car importsAs well as 25% tariff for all steel and aluminum products.

Loredan Muharemi, a study in Morningstar, said on Monday that even if Trump’s tariffs were distributed to protection products, the impact on European shares under its lighting will probably be limited.

“Although it is too early to evaluate the complete impact of new tariffs on the defense sector, it should be noted that Europe remains a net importer of the US military defense,” Muharemi CNBC said.

“Companies such as Bae Systems, Rheinmetall, Thales, Saab and Leonardo have already created- and in many cases have expanded, their industrial mark in the US, waiting for the potential re-election of Trump. This is not only a local presence to access their contracts for the US defense, but also provides a hedge against tariffs,” he said.

– CNBC Chloe Taylor contributed to this report.