Shares in Defense contractors and cybersecurity providers are seeing a sharp rise in value as the conflict in Ukraine escalates
Pledges by EU countries including Germany to increase defence spending saw stocks of contractors including Lockheed Martin and Northrop Grumman take a significant hike as some countries, including the U.S., sent weapons to Ukraine.
The German government, in a sudden reversal to decades of the country’s foreign policy, has announced a dramatic increase in military spending to €100 billion annually. Chancellor Olaf Scholz announced the increase in a move seen as dramatically shifting the country’s policy which has long favoured avoidance of conflict.
“For the first time ever, the European Union will finance the purchase and delivery of weapons and other equipment to a country that is under attack,” European Commission President Ursula von der Leyen said last Sunday.
Sweden, a historically staunchly neutral country, also announced it would send anti-tank weapons, helmets and body armour to Ukraine.
U.S. weaponry is on the front lines in the country, though no U.S. troops will be deployed.
Javelin anti-tank missiles, built by Lockheed and Raytheon, are part of a $350 million weapons package approved by the Biden Administration for Ukraine, Investors.com reports. Northrop, General Dynamics and Raytheon all nailed record highs on the market, with the U.K.’s BAE Systems also reaching an all-time best during the week, the business platform said.
“No matter when the shooting stops and Russia’s war in Ukraine comes to an end, it seems clear from actions taken by European countries that we’re entering a period of increased defense spending,” Market Watch said.