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European defence index soars as Trump win fuels spending boost hopes
November 10, 2016 / 9:36 AM / a year ago

European defence index soars as Trump win fuels spending boost hopes

MILAN, Nov 10 (Reuters) - Europe’s aerospace and defence index soared to an eight-month high on Thursday on expectations of higher defence spending in Europe, fuelled by the unexpected win of Donald Trump in the U.S. presidential election.

The index was up 2.8 percent by 0920 GMT, outperforming the broader market rally, with shares in companies such as France’s Thales, Italy’s Leonardo-Finmeccanica and Britain’s BAE Systems all rising between 2 and 4.4 percent.

Trump has suggested that the United States might not be willing to protect NATO allies that failed to spend enough on their own defence. Analyst say this could put pressure on some European countries like France, Germany and Italy to boost spending to reach the NATO target.

Reporting by Danilo Masoni; Editing by Atul Prakash

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