Evening Briefing Europe

Europe’s Defense Spend Pledge Boosts Stocks to Record High

Get caught up.

Pedro Sanchez, Spain's prime minister, Alexander Stubb, Finland's president, and Volodymyr Zelenskiy, Ukraine's president

Photographer: Neil Hall/EPA

European stock markets hit fresh record highs as European leaders pushed forward with plans to boost defense spending and support Ukraine. Defense stocks added $35 billion in market capitalization. France’s CAC 40 Index surpassed its May record high, while Germany’s DAX Index gained 3.4% for its biggest one-day advance since 2022.

Meanwhile, Sweden’s krona surged 1.5% against the dollar today, outperforming its G-10 peers. The nation’s military industry is seen as major beneficiary of any funding increase and its defense exports are among the biggest of major economies as a share of gross domestic product.