German parties' defence sea change sends arms companies' stocks soaring


FILE PHOTO: A Hensoldt Analytics' situational awareness system is displayed mounted on top of an Armored Multi-Purpose Vehicle during the Association of the United States Army (AUSA) Global Force Symposium & Exposition in Huntsville, Alabama, U.S. March 28, 2023. REUTERS/Cheney Orr/File Photo

BERLIN (Reuters) -The prospect of a military spending boom by Germany unprecedented since the Cold War sent Europe's defence stocks soaring after Reuters reported the likely next government was mulling a fiscal sea change for Europe's biggest economy.

Defence contractors including Thyssenkrupp, Hensoldt, Renk, Rheinmetall, BAE Systems and Leonardo saw their shares jump by double-digit percentages on news that the election-winning conservatives and the centre-left Social Democrats were contemplating debt-financed defence and infrastructure funds jointly worth just under a trillion euros.

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