DAX Gets Boost from Defense Spending Promises After Trump-Zelenskyy Fiasco
The meeting between the 2 presidents at the white house precipitated into an accusation match and may have ended any peace agreement.
- Zelenskyy defiantly ends hopes of a peace deal
- European leaders commit to extra defense spending
- Tariff woes tack back seat
The DAX rallied this morning by 0.83% as European leaders meeting over the weekend promised to spend more on defense spending. They also draw up a peace plan for the Ukraine-Russia conflict.
Zelenskyy Shows Great Lack of Statesmanship
The DAX has been spared a rout since European leaders met over the weekend to shore up rupture in bilateral relations at the White House meeting.
Zelenskyy and Trump had a rough a meeting on Friday, and whatever take you have on who may have been at fault, one thing is clear. The Ukrainian president does not want a peace agreement.
As Zelenskyy stated the only way to end this is by defeating Russia on the battlefield. Adding a call to arms of Nato troops, which would possibly be the only way.
President Trump has ruled out US intervention, and that would leave European countries to enter the conflict alone. The move seems unlikely, as the UK PM Stramer, said he would need US backing to send troops to Ukraine.
The question remains whether the EU and UK can broker a deal as they have stated a peace plan after this weekend’s meeting.
DAX Live Chart
Arms Race Fuels Sector Stocks and DAX
Today’s rally is led by defense sector stocks and hopes of a peace deal despite the words from Zelenskyy.
EU leaders joined the UK prime minister to hold talks on the Ukraine-Russia conflict. The group committed to more defense spending. Something the German Chancellor in-waiting has already done.
The announcement gave defense sector stocks a large boost today, helping the DAX higher. Rheinmetall (RHMG) spiked 17.4% this morning.
While talks of a peace plan set forward over the weekend meeting have helped stabilize the broader stock market. Under light of possible peace, the tariff hikes from the US have taken a back seat, for now.
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