(Reuters) – A sharp rally in defence shares lifted Britain’s FTSE 100 to record highs on Monday, as investors cheered the possibility of a military spending surge in Europe.
European leaders agreed on Sunday they needed to spend more on defence, as France and Britain prepared to present a partial one-month truce between Russia and Ukraine.
The agreement to increase defence spending is an effort to show U.S. President Donald Trump that the continent can defend itself, after Ukraine’s Volodymyr Zelenskiy clashed with the U.S. leader and cut short a visit to Washington.
Britain’s blue-chip index was up 0.7% by 1150 GMT, trading at a record high. The FTSE350 aerospace & defense index soared 8.2% to a fresh record high.
In the UK, BAE Systems led the gains with a nearly 14% jump, while Rolls-Royce Holdings jumped 5.4%, tracking similar moves in defence shares across Europe…
