European Defense Stocks Surge After Hamas Attack
European defense stocks experience significant gains after surprise Hamas attack, while energy stocks and oil prices also rise. European airline shares, however, decline due to flight cancellations.
European defense stocks experienced a significant boost on Monday following a surprise attack by Hamas on southern Israel over the weekend. Italian defense company Leonardo saw a 6% increase in trading, while Germany's Rheinmetall climbed 5.4%. France's Dassault Aviation and Thales also experienced notable gains of 4.9% and 4.6%, respectively. In London, BAE Systems shares rose by 4%.
In addition to the surge in defense stocks, energy company shares also witnessed a notable upturn due to the attack, leading to an increase in oil prices. Portugal's Galp saw shares rise by 3.5%, while Spain's Repsol experienced a 2.5% increase in shares. BP and Shell in London similarly saw their shares go up by 2.5% and 2.4% respectively. Eni in Italy also witnessed a 2.1% rise in shares, and France's TotalEnergies went up by 1.8%.
Conversely, the attack by Hamas resulted in the cancellation of several flights into Israel by European carriers and a subsequent decline in European airline shares. Air France-KLM shares fell by 3.6%, while British Airways parent International Consolidated Airlines Group shares dropped by 3.4% as of 0938 GMT. Ryanair shares were also traded down by 1.8%, and Germany's Lufthansa saw a decrease of 2.8%.