Surging Defense Stocks Led Europe's Quarter of US Outperformance
European defense stocks dominated a historic quarter of outperformance for the region's equities. And some investors are still trying to increase their positions.
Armored-vehicle producer Rheinmetall AG and Thyssenkrupp AG — which has a submarine business — both saw their share prices double in the first quarter, the two members of the benchmark Stoxx 600 Index to do so. The next six best performers were all firms that stand to benefit from a surge in defense spending by European nations amid US threats to walk back its security commitment to the continent.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Miami Herald
20 minutes ago
- Miami Herald
Tesla sales plunge in key European markets with one shocking exception
Tesla (TSLA) is preparing for a historic event, as it gears up to launch its first fleet of autonomous robotaxis in Austin, Texas. But so far this week, other events have sparked negative momentum, pushing shares down. The company's plan to venture into the self-driving car market is currently being overshadowed by CEO Elon Musk's disagreement with Donald Trump over the new budget bill, which he has described as a "disgusting abomination." Don't miss the move: Subscribe to TheStreet's free daily newsletter As of this writing, TSLA stock is down more than 20% for the past week and isn't showing any signs of slowing down. But these declines likely aren't due strictly to Musk and Trump's argument. Tesla's sales are falling steadily across many European markets, including the United Kingdom, France, and Spain. While this may seem discouraging to investors, there remains one outlier among European countries where Tesla sentiment has been declining. For months, European citizens have been making it clear that they won't be standing behind Musk. Protests erupted across the continent in response to his affiliations with Trump, and even as growth in the electric vehicle (EV) market rose, Tesla sales steadily trended downward. Related: Elon Musk company reveals major leap forward Sales declined in both the U.S. and China as well, highlighting the global aspect of the anti-Tesla backlash. Even the widespread availability of the popular Tesla Model Y and significant discounts haven't been enough to boost sales. Recent data reveals that while Tesla's deliveries for May 2025 were down significantly from where they were one year ago in most European markets, one country saw Tesla sales surge. Norway has reported that Tesla sales are up 213% from May 2024, reaching 2,600 in total. Its Scandinavian neighbors reported different statistics, with Tesla sales falling steadily in both Sweden and Finland. But part of the reason why they didn't dip in Norway may be due to the country's strong push toward accelerating EV adoption. Additionally, it should be noted that Tesla also reported concerningly low sales in Norway for May 2024. In this case, the contrast is important, as it suggests that Tesla's popularity in that specific market may not be as high as it appears at first glance. More Tesla News: Analyst says Tesla faces one big beautiful hit from Trump billElon Musk, Tesla finally get some good news out of ChinaAnalyst sets eye-popping Tesla stock price target As Electrek notes, "It's clear that the anomaly was more with May 2024 than incredible performance in May 2025, even though there's no doubt that Tesla's sales have recovered in Norway last month. That's partly due to Tesla offering record discounts, including zero-interest financing on the new Model Y." While Tesla has not issued any statements on its plunging sales across Europe, it did post on X celebrating its 213% growth in Norway. That statistic is certainly an anomaly, given how much Tesla's sales have fallen in similar markets, but it doesn't mean the company's problems in Europe are over. Related: The 'anti-Tesla' gives American buyers more good news As Electrek's analysis also notes, "2,500 Norwegians buying Tesla vehicles in May isn't compensating for the declines in other markets," speculating that recent success in Norway may not be sustainable in the second half of 2025. For that to happen, the company will need to reverse the current consumer sentiment that has spread across Europe. Experts have told TheStreet that they believe Europe's stance against Musk will negatively impact the company. "When Europe turns on your brand, a lot of the world follows," states Galileo FX CEO David Materazzi. "Lose Europe, lose your edge. Musk built it, and now he's sinking it." Additionally, Norway is only one part of Europe's market, and Tesla is also dealing with declining sales in both China and the U.S., larger markets that stand to impact it more than anywhere in Europe. Related: Heavily shorted AI stock is rapidly climbing the Fortune 500 The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
an hour ago
- Yahoo
European ETFs Set to Gain as ECB Cuts Rate Again
The European Central Bank (ECB), as widely expected, again cut its interest rate by 25 bps to 2% in a move to shore up a weakening economy. The move marks the eighth consecutive quarter-point cut in the past year. The ECB also signaled it is nearing the end of its rate-cutting cycle as inflation decision underscores growing concern over the eurozone's sluggish recovery in the face of global headwinds, most notably, the destabilizing effects of ongoing U.S. trade policies under President Donald Trump. The ECB's dovish stance will push European stocks and ETFs higher. With rates at their lowest in years and inflation subdued, European bonds, especially corporate debt, may gain renewed investor interest. A weaker euro will likely boost multinational earnings denominated in stronger foreign such, we have highlighted five European ETFs that stand to benefit from the ECB's decision. These are Vanguard FTSE Europe ETF VGK, iShares MSCI Eurozone ETF EZU, iShares Core MSCI Europe ETF IEUR, SPDR EURO STOXX 50 ETF FEZ and JPMorgan BetaBuilders Europe ETF BBEU. These funds could be excellent buys for investors seeking to reap benefits from the current measures. Economic growth has slowed across the eurozone, especially in France, Germany and Italy, and the outlook for next year is weak, according to forecasts by the European Union (EU). Eurozone inflation fell to 1.9% in May, slipping below the ECB's 2% target for the first time in nine months. Additionally, Trump's protectionist trade agenda has led to rate cuts by the ECB. The White House's imposition of fresh tariffs on European industrial goods and autos, along with retaliation from EU partners, has curtailed exports and dampened business investment. The eurozone's export-driven model, especially in manufacturing-heavy Germany, has proven vulnerable. A further escalation in global trade tensions could further hit euro area growth by dampening exports and dragging down investment and consumption (read: 6 Factors to Play Europe ETFs Now).The ECB's latest rate cut brings borrowing costs in the eurozone to less than half the level in the United States and the United Kingdom, where the Federal Reserve and Bank of England have held rates at 4.25%–4.5% and 4.25%, respectively. "While the uncertainty surrounding trade policies is expected to weigh on business investment and exports, especially in the short term, rising government investment in defense and infrastructure will increasingly support growth over the medium term," the ECB said. Vanguard FTSE Europe ETF (VGK)Vanguard FTSE Europe ETF offers exposure to companies located in the major markets of Europe by tracking the FTSE Developed Europe All Cap Index. It holds a broad basket of 1241 stocks with key holdings in financials, industrials, health care, and consumer discretionary sectors. Vanguard FTSE Europe ETF has AUM of $25.5 billion and trades in an average daily volume of 4 million shares. It charges 6 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk MSCI Eurozone ETF (EZU)iShares MSCI Eurozone ETF provides exposure to developed market countries using the euro for currency and follows the MSCI EMU index. The fund holds about 223 securities in its basket with financials, industrials, information technology and consumer discretionary taking a double-digit allocation each. From a country look, France and Germany take the biggest share in the basket with 31.3% and 29.3%, respectively. iShares MSCI Eurozone ETF is one of the most popular ETFs in the broader European space, with AUM of $7.9 billion and an average daily volume of 2 million shares. It charges investors 51 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook (read: Europe ETF (EZU) Hits New 52-Week High). iShares Core MSCI Europe ETF (IEUR)iShares Core MSCI Europe ETF tracks the MSCI Europe Investable Market Index, holding a broad basket of 1019 European companies. It has key holdings in financials, industrials, and health care sectors with double-digit exposure each. The United Kingdom is the top country accounting for 22.8%, followed by France (15.6%), Germany (14.9%), and Switzerland (14%). iShares Core MSCI Europe ETF has AUM of $6.7 billion and trades in an average daily volume of 1 million shares. It charges 9 bps in annual fees and has a Zacks ETF Rank # EURO STOXX 50 ETF (FEZ)SPDR EURO STOXX 50 ETF follows the EURO STOXX 50 Index, which measures the performance of some of the largest companies across the components of the 20 EURO STOXX Supersector Indexes. The fund appears rich with AUM of $4.6 billion and average daily volume of around 1.4 million shares. It charges 29 bps in annual fees and holds 50 securities in its basket with key holdings in financials, industrials, information technology and consumer discretionary sectors. In terms of country allocation, France and Germany lead with 36.9% and 29.1% share, respectively, followed by the Netherlands (23.3%), Spain (8.7%) and Italy (8.4%). SPDR EURO STOXX 50 ETF has a Zacks ETF Rank # BetaBuilders Europe ETF (BBEU)JPMorgan BetaBuilders Europe ETF provides investors exposure to developed European equity markets by tracking the Morningstar Developed Europe Target Market Exposure Index. It holds 396 stocks in its basket with key holdings in financials, industrials and consumer discretionary sectors. Here again, the United Kingdom is the top country accounting for 22.3% share, followed by France, Germany, and Switzerland with 14% share each. JPMorgan BetaBuilders Europe ETF has amassed $4.6 billion in its asset base and charges 9 bps in fees from investors. It trades in a heavy volume of nearly 330,000 shares a day on average and has a Zacks ETF Rank #3. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR EURO STOXX 50 ETF (FEZ): ETF Research Reports iShares MSCI Eurozone ETF (EZU): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports iShares Core MSCI Europe ETF (IEUR): ETF Research Reports JPMorgan BetaBuilders Europe ETF (BBEU): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Ukraine completes preparations to join EU's roam like at home zone
The European Commission received formal notification from Ukraine confirming the completion of all legislative procedures required to join the EU's Roam Like at Home zone. Source: Rikard Jozwiak, an editor at Radio Free Europe/Radio Liberty, as reported by European Pravda Details: Moldova is expected to submit a similar notification soon, with both countries set to join the roaming-free zone simultaneously. According to Jozwiak, Ukraine and Moldova will become part of the EU roaming zone from 1 January 2026. The roaming zone encompasses all 27 EU member states, as well as Norway, Iceland and Liechtenstein. This marks the first time the zone will expand to include candidate countries for EU membership. "I know that the word 'historic' is overused these days but this is exactly that," Jozwiak said. On 2 June 2025, President Volodymyr Zelenskyy signed the Law of Ukraine On Amendments to Certain Laws of Ukraine on the Implementation of the European Union's Legislation on Electronic Communications (reg. No. 12150). The European Commission is now expected to initiate a decision on mutual provision of the internal market regime for roaming between the EU and Ukraine, effectively enabling full accession to the roam like at home policy. Once implemented, Ukrainians will be able to use roaming services at domestic tariff rates when travelling in EU countries, with no variation in costs or conditions based on the country of residence within the EU. Background: Since Russia's war of aggression began, millions of Ukrainians in the EU have communicated with relatives in Ukraine without additional roaming charges, thanks to agreements between operators. This temporary arrangement, prompted by the displacement of many Ukrainians to European countries, was last extended in July 2024 for one year. Support Ukrainska Pravda on Patreon!
