As Europe prepares for a world without American military aid, the E.U. plans to invest €800 billion on defense.

As European Union is planning to raise €150 billion to boost the continent’s defences, markets as well as defence contractors have started looking forward to the issuance of EU war bonds

Donald Trump’s abrupt decision to pause military aid to Ukraine forces Europe to step in with hopes to plug the gap. Brussels has the financial means, but not all the military equipment necessary to help Kyiv mount an effective defence.

Share prices of European defence companies soared Monday as London and the European Union look to ramp up military spending in the face of uncertainty over the United States' commitment to Ukraine and NATO.

Europe’s dark defence picture has a bright side. President Donald Trump’s hostility to erstwhile U.S. allies in Europe, exemplified by last Friday’s dressing down of Ukrainian President Volodymyr Zelenskiy at the White House,

Rolls-Royce shares have surged and hit a new record high after the engine maker upgraded its guidance, paid a dividend and announced a buyback. Since it began its ascent in 2023, its shares have outperformed the Magnificent 7 big tech stocks in the US.

An index of aerospace and defence companies was up 0.8% to new record high at 1224 GMT, an outlier in a sea of red, with region-wide STOXX 600 dropping 1.4%, as U.S. tariffs on Canada, Mexico and China took effect.