European defence stocks dominated a historic quarter of outperformance for the region’s equities. And some investors are still trying to increase their positions.
Armoured-vehicle producer Rheinmetall AG and Thyssenkrupp AG — which has a submarine business — both saw their share prices double in the first quarter, the two members of the benchmark Stoxx 600 Index to do so. The next six best performers were all firms that stand to benefit from a surge in defences pending by European nations amid US threats to walk back its security commitment to the continent.
