European defence stocks fell sharply on Wednesday after signs of a renewed United States push to end the Russia–Ukraine war triggered a rapid sector selloff.
The STOXX Aerospace and Defence Index dropped more than 3 percent, hitting its weakest level since early September. Major players including Rheinmetall, Renk, BAE Systems, Leonardo and Saab slipped between 4 and 7 percent, making the sector one of the worst performers on a steady pan-European market.
The move came after a Politico report suggested a potential framework agreement on Ukraine that Washington has quietly discussed with Moscow. A senior Ukrainian official confirmed to Reuters that Kyiv has received signals about a new set of US proposals. Ukraine’s government bonds rose on the headlines while defence stocks sank.
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