The shares of the European defense companies decreased on Tuesday, as the progress on the peace in Ukraine made investors wonder if the spectacular growth of the sector could have ended, notes FT. The shares of the Italian company Leonardo and Hensoldt in Germany decreased by 9.5%, while the Rheinmetall shares, also from Germany, lost 4.9%. US President Donald Trump said on Monday that the US will be «involved» in supporting Ukraine to defend itself, if it can be reached with Russia, and promised to organize a meeting between leaders Volodimir Zelenski and Vladimir Putin. «Any disassembly of tensions between Russia and Europe, as well as discussions about spending larger amounts on American equipment, are a negative factor for these companies,» said Craig Cameron, the head of the European Action Department of Franklin Templeton. High assessments mean that «there is a need for delivery,» he added. The actions of the European defense companies increased strongly in the first half of this year, stimulated by the change of Germany fiscal policy in March.
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