Defence giant BAE Systems has helped lift London’s FTSE 100 higher with investors anticipating greater military spending as European leaders hold emergency talks over the Ukraine war.
It came as Sir Keir Starmer arrived in Paris for emergency talks with fellow European leaders over Russia’s war in Ukraine, after US President Donald Trump has been pushing for a deal with Russia’s President Vladimir Putin.
Konstantin Oldenburger, a market analyst for CMC Markets, said: “While the US intends to negotiate a resolution to the war exclusively with Russia and Ukraine, it appears they will leave potential, peacekeeping responsibilities to the Europeans, who will need to significantly boost their defence budgets to do so.
BAE Systems, which makes weapons, military vehicles and aircraft, saw its share price jump by about 9% on Monday, taking it to the top of the FTSE 100.
“However, vice president JD Vance’s appearance in Munich made it abundantly clear that Europe must invest heavily to be taken seriously by the US regarding its defence capabilities.”.
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