BUZZ-European defence stocks extend gains ahead of Ukraine talks

European defence stocks extend gains after scoring a new record close on Monday on prospects of higher defence spending, ahead of talks between U.S. and Russian officials over a possible Ukraine peace deal

European aerospace and defence stocks .SXPARO rise 0.8% after rising for three straight sessions

Shares in Germany's Rheinmetall RHMG.DE, Hensoldt HAGG.DE and Renk R3NK.DE rise 0.7%, 3.2% and 7%, respectively

Sweden's Saab SAABb.ST, Italy's Leonardo LDOF.MI and France's Thales TCFP.PA are up between 1% and 1.5%

"I see investors pricing higher and more concentrated spending moving forward, driving European defense stocks, in contrast to U.S. peers trading down on Friday," Tom Guinchard from Pareto Securities AB says

"We will begin seeing alternative financing solutions for defense procurement and spending moving forward, along with increased defense budgets across EU countries," Guinchard adds

Hensoldt and Renk top mid-cap .MDAXI and small-cap .SDAXI indexes, respectively