The election of Donald Trump as US president has investors betting that his more isolationist stance will force governments on this side of the Atlantic to beef up their security.
Shares in BAE Systems (BA) closed up 4 per cent on the day the result was announced, while Italy’s Leonardo (IT:LDO) and Germany’s Rheinmetall (DE:RHM) were up 3 per cent.
Trump “has repeatedly said that he could settle Russia’s invasion of Ukraine in his first day”, said Axa Investment Institute’s head of macro research, David Page. “We fear that this risks forcing a settlement on Ukraine by removing military support,” he added.