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European defence stocks slide amid progress in Ukraine peace talks

Published by Global Banking & Finance Review

Posted on December 16, 2025

1 min read

· Last updated: January 20, 2026

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European defence stocks slide amid progress in Ukraine peace talks
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Dec 16 (Reuters) - European defence stocks fell on Tuesday after U.S. officials offered on Monday to provide NATO-style security guarantees for Kyiv under a proposed peace deal with Russia, following

European Defence Stocks Decline Amid Ukraine Peace Negotiations

Dec ‌16 (Reuters) - European defence ‍stocks ‌fell on Tuesday after ⁠U.S. ‌officials offered on Monday to provide NATO-style ⁠security guarantees for Kyiv under ​a proposed peace ‌deal with ⁠Russia, following two days of talks in ​Berlin.

Shares in Rheinmetall, Indra, Leonardo and Saab were among ​the ‍biggest fallers ​on Europe's benchmark STOXX 600 index, with losses ranging from 3.5% to 5%.

The ⁠European aerospace and defence index ​was down around 1.8% at 0826 GMT.

(Reporting by Emanuele ‌Berro in Gdansk, editing by Milla Nissi-Prussak)

Key Takeaways

  • European defence stocks fell after U.S. proposed security guarantees for Kyiv.
  • Rheinmetall, Indra, Leonardo, and Saab shares dropped significantly.
  • The STOXX 600 index saw notable declines in defence stocks.
  • Peace talks between Ukraine and Russia continue in Berlin.
  • The European aerospace and defence index decreased by 1.8%.

Frequently Asked Questions

What is the STOXX 600 index?
The STOXX 600 index is a stock market index that represents 600 of the largest companies across 17 European countries. It is used as a benchmark for the performance of European equities.
What are NATO-style security guarantees?
NATO-style security guarantees refer to commitments made by NATO member countries to protect each other in case of an attack, often involving military support and defense collaboration.
What is the European aerospace and defense index?
The European aerospace and defense index tracks the performance of companies involved in the aerospace and defense sectors in Europe, reflecting trends in military spending and technological advancements.

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