European defense stocks took a hit on Monday, continuing their downward spiral as Ukraine and the U.S. made significant strides in peace negotiations over the weekend. This comes as a surprise to many, given the initial skepticism surrounding the potential agreement's favoritism towards Russia. The Stoxx Europe Aerospace and Defense index saw a 0.7% decline during morning trading, building on the 3.4% drop from the previous day. This negative trend was mirrored by German defense companies, with Rheinmetall, Hensoldt, and Renk all experiencing a 4% plunge by 8:45 a.m. London time. Sweden's Saab also took a hit, falling by 3%. Despite the progress, the U.S. and Ukraine acknowledged that no concrete security guarantees for Ukraine were agreed upon during the talks, which included U.S. Secretary of State Marco Rubio. The joint statement released by both countries emphasized the 'highly productive' nature of the consultations, leaving room for further negotiations and potential breakthroughs.
