Defense stocks fall after reports Germany may scrap warship plan
European defense shares slide after Germany may cancel F126 frigate plans See why Rheinmetall, TKMS and peers moved as spending expectations reset
European defense shares fell on Wednesday after reports that Germany may cancel plans to build six F126 frigates and instead buy smaller ships from TKMS.
Rheinmetall, which had been expected to lead the program, dropped sharply, while TKMS rose. Other defense names, including Hensoldt, Renk, Saab, Leonardo and BAE Systems, also moved lower.
The report added pressure to a sector that has already weakened this year as investors reassess how much of Europe’s planned military spending will translate into contracts and longterm growth.