31 March | Euro

EU defense spending plans support the region's corporate markets and euro – Reuters

EU defense spending plans support the region's corporate markets and euro – Reuters

As reported by Reuters, the weakening of ties between the United States and Europe makes EU countries more attractive to investors. Thus, the growing number of deals by with European assets was highlighted by Mark Dowding, IT director of RBC's BlueBay fixed income group.

Brussels' plan to allocate up to 800 billion euros ($866 billion) for defense modernization and Germany's fiscal expansion mean that stocks of companies in this segment remain an attractive opportunity for investors, the agency pointed out. European aerospace and defense stocks have gained 33% this year. Citi estimates that their expected average annual earnings growth through 2028 will range from 8% to 32%.

Other market participants quoted by Reuters, including Evli portfolio manager Thomas Hildebrandt, expect positive dynamics not only for defense companies, but also in the segments of logistics, communications and telecommunications.

At the same time, as the agency notes, the pool of AAA-rated bonds supporting the euro's status as a reserve currency will be expanded in the near future. Germany's unprecedented spending on infrastructure and defense may lead to an increase in debt by more than a trillion euros.

Period: 01.05.2025 Expectation: 1000 pips
GBPUSD to test level of 1.34 again
Yesterday at 10:58 AM 43
Brent sell
Period: 01.05.2025 Expectation: 660 pips
Trade uncertainty and excess OPEC+ supply are dragging down Brent
Yesterday at 08:49 AM 35
Period: 29.04.2025 Expectation: 600 pips
USDCAD to head towards 1.39400 after rebounding from 1.38200
Yesterday at 07:48 AM 28
Period: 02.05.2025 Expectation: 1669 pips
AUDCAD gains on potential easing of trade tensions between US and China
Yesterday at 07:02 AM 26
Period: 30.04.2025 Expectation: 12000 pips
ETHUSD set to test upper boundary of downtrend channel
24 April 2025 74
Period: 25.04.2025 Expectation: 500 pips
AUDUSD to fall to 0.63000
24 April 2025 42
Go to forecasts