European defence stocks rise after report on German military funding

European aerospace and defence stocks .SXPARO rise 1.6% after a Bloomberg News report said Germany is set to approve defence contracts for a record high value

German lawmakers are set to approve 29 military procurement contracts worth a record 52 billion euros ($60.5 billion) next week, Bloomberg writes

Tuesday's gains, if they hold, set Europe's benchmark defence and aerospace index .SXPARO for its biggest weekly rise since October

"We have seen German funding bills being confirmed and the U.S. bill highlighting the need for an accelerated European defence build out," analyst Tom Guinchard from Pareto Securities told Reuters when asked about the sector gains

Germany's Renk R3NK.DE, Rheinmetall RHMG.DE and Hensoldt HAGG.DE are up between 4.4% and 6.9%

France's Thales TCFP.PA, Sweden's Saab SAABb.ST and Italy's Leonardo LDOF.MI rise between 3.4% and 3.6%

Spain's Indra Sistemas IDR.MC and Britain's BAE Systems BAES.L are up 2.3% and 2.7%, respectively

($1 = 0.8590 euros)