(BFM Stock Exchange) – The meeting between Donald Trump and Vladimir Putin, on the night of Friday to Saturday, did not succeed in concrete announcements concerning the war in Ukraine. This Monday, European defense groups, in particular Germans, are growing.

The long -awaited summit between Donald Trump and Vladimir Putin, which took place in the night from Friday to Saturday, did not give rise to concrete advances. The American president initially intended to reach an agreement acting a ceasefire in Ukraine during this meeting.

Ultimately, the meeting between the two heads of state “has not resulted in immediate progress”, writes UBS. Vladimir Putin spoke of “a constructive atmosphere” when Donald Trump described the “productive” meeting. But, the American president now excludes an immediate cease-fire, preferring to lead to “a peace agreement,” reports AFP.

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Meetings this Monday

The Ukrainian president, Volodymyr Zelensky, as well as several European leaders, notably the French president Emmanuel Macron and the German Chancellor Friedrich Merz go this Monday to Washington for a series of interviews with Donald Trump.

The European Heads of State and Government will support the Zelensky position and ensure that the White House boarder does not accept a favorable peace plan in Moscow.

“Putin has maintained the maximum requirements of Russia, in particular the sale of territories by Ukraine, its demilitarization and its abstention to join military alliances or support mechanisms”, observes, on this last point, UBS.

“Given the gap which remains very important (between the positions of each camp, editor’s note) of the lack of decisive evolution on the battlefield and the continuous support given to Ukraine, we plan that the war will continue until next year,” writes the Swiss bank in a note.

“Blood blow”

On the stock market, these announcements are translated into a new increase in the European Defense sector in Frankfurt in particular. Rheinmetall, which provides armored and ammunition, takes 3.4%; Hensoldt, specialist in military optronics, gains 3.4%; Renk, who produces gears for tanks and military ships, takes 3%. In London, Bae Systems wins 2% while at Milan Leonardo gained 2.3%.

In Paris, movements are less pronounced. Thales wins 0.8% around 11:50 am, still signing the second highest increase in CAC 40, while Dassault Aviation advances 0.5%.

“The absence of progress in the conclusion of an agreement should give a boost today to the European values of the defense sector, which have been put under pressure as the meeting approach (between Putin and Trump, editor’s note),” writes Jefferies in a note published this Monday before the opening of the markets.

“At this point, we continue to think that a cease-fire/peace agreement is still far from being concluded, Ukraine being unlikely to accept to sell territories and no tripartite meeting being planned,” continues the bank.

“As a reminder, whether an agreement is concluded or not, we continue to think that this should not compromise the trends in defense spending observed in Europe,” she said.

Strong increases since the start of the year

If the possibility of a ceasefire in Ukraine has been able to create a certain market nervousness on defense titles, some companies in the sector are more exposed than others. In a note published in October, Oddo BHF wrote that Rheinmetall drew approximately 20% of his revenues from the defense of contracts with Ukraine.

Recall that the sector has been on the rise since the start of the year. Thales has won 71% since January when Rheinmetall won 172%.

Defense groups have been powered by multiple advertisements of military budgets in Europe. Under pressure from the United States, which is now much less inclined to ensure the safety of the old continent, Europe has decided to rearm. For example, Germany has announced hundreds of billions of euros in defense.

In June, NATO member countries undertook to invest 5% per year of their GDP in defense spending by 2035, against a previous target of 2%.

“We believe that this 5% target by 2035 could represent an annual increase of approximately $ 2,000 billion in NATO defense expenses, an average annual growth rate of around 8% between 2024 and 2035,” calculated Royal Bank of Canada.