EUR/AFN Price & Performance (EURAFN)

European defense companies, including Rheinmetall, BAE Systems, and Leonardo, saw significant stock gains following the EU's approval of a robust rearmament plan. The aerospace and defense index has risen nearly 30% this year, reflecting heightened geopolitical concerns and increased government spending on military capabilities.12

European markets rebounded as optimism surrounding a proposed 30-day Ukraine ceasefire boosted investor confidence. Key indices like Germany's DAX and France's CAC 40 saw gains, while the STOXX 600 rose 1.1%. Market sentiment improved despite ongoing trade tensions stemming from U.S. tariffs on European imports.34

European markets faced declines led by tech sector losses, with ASML dropping 4%. Broader market concerns include U.S. inflation data and geopolitical uncertainties. Porsche also reported challenges, citing trade tensions and competition in China, which impacted its earnings outlook.56