"Profit-taking after a strong run", European defence stocks fall after Trump-Zelenskiy meeting fuels peace talks hopes

** European defence stocks fall after the meeting between Zelenskiy and Trump at the White House raised prospects on peace talks

** U.S. President Donald Trump told President Volodymyr Zelenskiy that the United States would help guarantee Ukraine's security in any deal to end Russia's war there

** STOXX aerospace and defence index .SXPARO falls 1.8%, which has gained 52.4% YTD including today's session

** "There's been some profit-taking after a strong run, and the sector is sensitive to shifts in sentiment around peace prospects," Marcus Gavelli from Pareto Securities says

** "The Zelenskiy-Trump meeting may have added to speculation of a softer stance on the Ukraine conflict, but I'd see today's drop more as a short term reaction than a change in fundamentals," Gavelli adds

** Germany's Rheinmetall RHMG.DE, Hensoldt HAGG.DE and Renk R3NK.DE fall 4.1%, 5.7% and 7.3%, respectively

** France's Thales TCFP.PA and Sweden's SAAB SAABb.ST slide between 2.6% and 4.2%

** Norway's Kongsberg KOG.OL and Italy's Leonardo LDOF.MI are down 3.8%-4.6%

** Britain's Rolls-Royce Holdings RR.L, BAE System BAES.L, and Babcock International BAB.L fall between 1.3% and 2.8%

** Rheinmetall and Renk hits the bottom of blue-chip .GDAXI and mid-cap .MDAXI indexes, respectively