Story perspectives

European Defense Stocks Drop Amid Ukraine Peace Talks

11/25/2025

Summary

Story summary

On November 24, 2025, European defense stocks fell 2% to a four-month low after a 3.4% drop the prior Friday.
The decline followed ongoing peace talks regarding Ukraine.
Defense stocks are up 48% year-to-date due to expectations of increased government spending.
Loredana Muharremi from Morningstar says the market's reaction is exaggerated.
Muharremi notes that long-term defense budget increases will sustain valuations despite short-term Ukraine-related volatility.

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Story summary

On November 24, 2025, European defense stocks fell 2% to a four-month low after a 3.4% drop the prior Friday.
The decline followed ongoing peace talks regarding Ukraine.
Defense stocks are up 48% year-to-date due to expectations of increased government spending.
Loredana Muharremi from Morningstar says the market's reaction is exaggerated.
Muharremi notes that long-term defense budget increases will sustain valuations despite short-term Ukraine-related volatility.