Defence shares struck a high note at the open in London, powering to the top of the leaderboard and standing out as some of the strongest performers on the FTSE 100 as investors rotated decisively into the sector.
Defence stocks surged as geopolitical tensions flared anew, with Donald Trump floating the idea of a US takeover of Greenland just days after the dramatic ousting of Venezuela’s leadership.
Weapons maker BAE Systems topped the leaderboard on the FTSE 100, as defence names powered higher across London markets. The rally followed comments by the US president to The Atlantic in which he said, “we do need Greenland, absolutely”—remarks that sparked sharp reactions across Europe.
In Copenhagen, the response was swift. Mette Frederiksen urged Mr Trump to “stop the threats”, stressing that Greenland is “not for sale”, in what many see as the latest sign of strain in the transatlantic alliance.
Defence stocks climbed by more than 3% in aggregate across the FTSE 100 and the FTSE 250. BAE Systems rose as much as 4.9%, while Babcock International gained 4.1%, Chemring advanced 4.2%, and QinetiQ added 3.6%.
The defence rally came against a softer backdrop for energy markets. Oil prices slid after US forces captured Nicolas Maduro in Caracas over the weekend. Brent crude fell as much as 1.3% after Mr Trump said American companies would “spend billions of dollars” to “take the oil out of the ground” in Venezuela, a country that holds the world’s largest proven crude reserves.
