UK defence stocks at record high as Trump delays EU tariffs, threatens Russian sanctions

Britain's aerospace and defence stocks .FTNMX502010 rise 2.7% to their all-time high

U.S. President Donald Trump backs away from his threat to impose 50% tariffs on imports from European Union next month and threatens additional sanctions on Russia

Shares of heavyweights BAE Systems BAES.L and Rolls-Royce RR.L hit record high, rising as much as 3.3% and 2.9%, respectively

Shore Capital analyst Jamie Murray wrote in email that RR's engine flying hours may be dampened by weak consumer sentiment around tariffs, but easing pressures could improve outlook for near-term targets and cash generation

Melrose gains 3.4% and is among top FTSE 100 .FTSE gainers, while QinetiQ Group QQ.L moves to top of sub-index

Other constituents Babcock BAB.L, Chemring CHG.L and Senior SNR.L are up 1.7%, 3% and 1.9%, respectively

Sub-index is up 50.1% this year