** Leonardo and the broader European defense sector are facing heavy selling pressure as investors opt to take profits ahead of weekend peace talks between the U.S. and Iran scheduled in Islamabad, Pakistan, and amid expectations of a resumption in peace negotiations between Russia and Ukraine.
** As of 12:30 p.m., Leonardo is down 6.3% at 55.72 euros, while German peer Rheinmetall has shed 5.8%. France's Thales is down 2.6%, and Britain's BAE Systems has lost approximately 2.9%. In Milan, Avio is also trading lower, falling 5.2% to 34.65 euros, while Fincantieri has slipped 2% to 13.75 euros.
** One trader noted that the potential cessation of hostilities in the Middle East, ahead of the weekend meeting between U.S. and Iranian delegations, triggered the sell-off across the European defense space.
** The sector's performance is also being weighed down by the announcement of a truce between Russia and Ukraine for Orthodox Easter and hopes for a potential restart of talks. This follows a Bloomberg report stating that Ukraine's chief negotiator, Kyrylo Budanov, sees progress toward a peace agreement with Russia.
(Giancarlo Navach, editing Claudia Cristoferi)
