European defense shares sink ahead of impending Trump-Putin meeting

Published 11/08/2025, 09:24
© Reuters

Investing.com - Shares of European defense companies slipped in early trading on Monday as investors gauged whether a Ukraine peace deal may be forged at an upcoming meeting between U.S. President Donald Trump and Russian counterpart Vladimir Putin later this week.

Shares of Renk (ETR:R3NK) and Hensoldt (ETR:HAGG) both fell by more than 2%, as did Germany’s Rheinmetall (ETR:RHMG) and Italy’s Leonardo (BIT:LDOF).

Ahead of the summit, due to take place in Alaska on Friday, Trump suggested that a potential agreement to end the more than three-year old conflict in Ukraine could see the swapping of territory by both sides. Trump first announced the meeting with Putin on Friday, the same day as a self-imposed deadline for Moscow to present Washington with a ceasefire or incur further sanctions.

The absense of Ukrainian leader Volodymyr Zelenskiy from the meeting has raised some concerns around the terms of any accord, with worries swirling around whether the country will have a peace deal effectively dictated to it by the U.S. and Russia.

However, Zelenskiy still has the backing of the NATO alliance and many European countries, who have stressed that Kyiv cannot be sidelined during the negotiations. U.S. Vice President JD Vance has also said that the White House is working to put together a meeting that would include Trump, Putin and Zelenskiy.

Three rounds of discussions between Ukraine and Russia in recent months have failed to yield an end to the hostilities.

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