LONDON, Jan 22 (Reuters) - European stocks expected to benefit from an end to Russia's war in Ukraine rallied on Thursday, and defence stocks dropped after Ukrainian president Volodymyr Zelenskiy said
Stocks Linked to Ukraine Surge as Defence Shares Decline on Peace Prospects
Market Reactions to Ukraine Peace Talks
LONDON, Jan 22 (Reuters) - European stocks expected to benefit from an end to Russia's war in Ukraine rallied on Thursday, and defence stocks dropped after Ukrainian president Volodymyr Zelenskiy said Ukrainian and Russian teams will have their first trilateral meeting with U.S. officials.
Zelenskiy discussed security guarantees and a plan for post-war recovery during his meeting with U.S. President Donald Trump in Davos.
Austrian bank Raiffeisen gained 6%, airline Wizz Air and travel firm Tui rose 9% and 4% respectively, while Ukraine-exposed miner Ferrexpo soared 19%. An index European materials and construction stocks rose as much as 2.9%, with Buzzi, Heidelberg Materials and Rockwool among the top gainers.
Performance of Ukraine-Exposed Stocks
All typically rally at times when markets see an increased prospect of a deal to end the war.
Decline in Defence Stocks
In contrast, an index of European defence stocks dropped 2.3%, set for its biggest daily fall since early December.
Saab dropped 4.3% and Rheinmetall 3.7%. Defence stocks had been under pressure already after Trump backed off tariff threats towards Europe and ruled out taking Greenland by force.
(Reporting by Alun John; editing by Danilo Masoni)
