Shares rise as defence stocks feel benefit of Trump win

Europe’s shares rose on Monday, with defence stocks feeling the benefit amid hopes for higher spending in Europe under Donald Trump’s second US presidency.
The Irish index of shares ended the day up 1.15 per cent, joining a broad rally in European markets as investors awaited key economic data this week.
Banking stocks helping to drive the index higher, with AIB rising 1.3 per cent, while gained 1 per cent. Permanent TSB shed 2.5 per cent.
Food group Glanbia added 3.4 per cent to its stock price, finishing the day just under €15. Ryanair shares added 0.3 per cent over the session, while hotel group Dalata was 2 per cent up over the day.
Insulation specialist Kingspan saw its stock climb 3.2 per cent on Monday.
The blue-chip FTSE 100 rebounded 0.7 per cent from a three-month low touched in the prior session and ended its four-day streak of losses. The midcap FTSE 250 index climbed 1 per cent.
Croda rose 5.2 per cent, leading gainers among the FTSE 100 components, after the chemical group posted a 5 per cent growth in third-quarter group sales.
NatWest gained 3.7 per cent after the bank said it bought back £1 billion worth of its own shares from Britain’s government.
Kainos Group jumped 6.2 per cent, among the top gainers in the midcap index, after the IT software provider reported a 1 per cent rise in half-year adjusted pretax profit to £38.2 million.
The pan-European STOXX 600 closed 1.1 per cent higher, with most sectors and regional bourses ending in positive territory.
Investors piled into European defence stocks on Monday amid hopes for increased spending. Mr Trump has warned of scaling back US military support for Ukraine and forcing Nato members to spend 2 per cent or more of their GDP on defence.
Italy’s Leonardo, Germany’s Hensoldt, Rheinmetall and Renk and Sweden’s Saab jumped 3.5 per cent to 5.8 per cent, with the broader defence index climbing 2.6 per cent and hitting a record high.
However, the upbeat European market sentiment also likely got a boost from Wall Street’s record-breaking rally.
Among individual movers Evotec soared 17 per cent after private-equity firm Triton confirmed an around 10 per cent stake in the German drug developer, and a media report said it was weighing a takeover bid.
German automotive and industrial supplier Continental jumped 10.6 per cent after a third-quarter profit beat, aiding a 1.5 per cent rise in the auto index.
Delivery Hero rose 5.2 per cent on the food-delivery firm’s plans to list its Talabat business in Dubai in December.
Europe’s biggest company by market cap, Novo Nordisk, also rose nearly 4 per cent, helping the healthcare index rise 1.5 per cent.
On the flip side Burberry lost 3.3 per cent after Reuters reported Italy’s Moncler was not in talks to take over the British luxury brand.
Wall Street’s main indexes were near record highs on Monday, holding on to post-election gains, in advance of the next batch of economic data that could decide whether the equity rally can sustain itself.
Several stocks that gained following the US election results continued their upward trajectory. Tesla jumped 7.4 per cent after touching $1 trillion in market value on Friday for the first time since 2022.
The Dow Jones Industrial Average rose 374.85 points, or 0.85 per cent, to 44,363.84, the S&P 500 gained 14.29 points, or 0.24 per cent, to 6,009.83, and the Nasdaq Composite lost 12.66 points, or 0.07 per cent, to 19,274.12.
Financial stocks jumped 1.85 per cent to a record high, with banks giving the biggest boost to the Dow.
Crypto stocks rallied as bitcoin soared past $84,000 on Monday. Coinbase Global jumped 17 per cent.
– additional reporting: Reuters