After the military strike against Houthi rebels, investors increased their bets on defense stocks on Friday.
The purchases pushed the Rheinmetall share to a record high of 315 euros in the morning; most recently the increase via XETRA was 1.33 percent at 312.30 euros. HENSOLDT took the lead in the MDAX with a recent premium of 4.6 percent to 26.86 euros.
Defense stocks were also in vogue on the European stock exchanges: In Milan, Leonardo shares rose by 2 percent, reaching their highest level since 2008. In London, BAE Systems shares rose by 1.6 percent to another record high.
Jefferies analyst Sheila Kahyaoglu noted in a study that U.S. Department of Defense spending rose 17 percent year-over-year in December. Spending on research and development in this area would have increased even more.
The USA and Great Britain, with the support of the Netherlands, Canada and Bahrain, attacked Houthi rebel positions in Yemen on Friday night. The military strike is a response to the Houthis’ “illegal, dangerous and destabilizing” attacks on ships in the Red Sea and is based on the right of self-defense, according to a joint statement, which is also supported by the federal government. According to the Houthi television channel Al Massirah, a Houthi representative threatened retaliation.
FRANKFURT (dpa-AFX)
Selected leverage products on BAE Systems
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on BAE Systems
The leverage must be between 2 and 20
Advertising
Image sources: Tobias Arhelger / Shutterstock.com, Postmodern Studio / Shutterstock.com