FRANKFURT (dpa-AFX) - German defense stocks continued their recovery on Tuesday. Shares of Rheinmetall have now returned to their simple 200-day moving average, a key indicator of long-term trends. From their low point at the end of April--when they dropped to EUR1,410 on December 1--they have since rebounded by around 18 percent.
The pressure from the new US initiative for ending the war in Ukraine has temporarily subsided. According to the leadership in Kyiv, a revised version of the US plan is set to be delivered to Washington on Tuesday, featuring significant changes. Ukrainian President Volodymyr Zelensky told local journalists that the plan drafted by the US administration has been cut from 28 to 20 points. Meanwhile, Foreign Minister Johann Wadephul expressed skepticism about the plan's chances for success, given Russia's demands for territorial concessions from Ukraine.
Military experts and analysts have repeatedly emphasized that the outcome of the war in Ukraine would do little to alter the threat landscape--and thus, the demand for armaments.
Shares of tank transmission manufacturer Renk and sensor specialist Hensoldt also continued to recover on Tuesday. While Rheinmetall, Renk, and Hensoldt remain well below their early October highs, all three stocks are still showing triple-digit gains for the year 2025.
