BUZZ-Defence stocks back in black in Europe

Updates with shares reversing course

Shares in European defence companies turn positive in volatile trade after losing ground earlier on hopes of a peace deal between Ukraine and Russia following U.S. President Donald Trump's phone calls with leaders of both countries

Trump said on Wednesday that Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy expressed a desire for peace in separate phone calls with him

Analysts and investors have said any weakness in the sector could be a buying opportunity as Europe bulks up its defence spending

A gauge of aerospace and defence stocks .SXPARO is up 1.1% at 1128 GMT to a new intraday record high after slipping as much as 0.9%

Britain's BAE Systems BAES.L rises around 3% after falling as much as 2.9% earlier; Sweden's Saab SAABb.ST is up 2.3%

Germany's Rheinmetall RHMG.DE, Hensoldt HAGG.DE, and Renk R3NK.DE reverse course and rise between 0.8% and 2%

Italy's Leonardo LDOF.MI is up 1.5%, while France's Thales TCFP.PA 2%

French maker of Rafale fighter jets Dassault Aviation AM.PA is up 0.7%