"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