Proposals have already been put forth by the Commission.
In a significant development, there is a potential for all three leaders, Donald Trump, Volodymyr Zelenskyy, and Vladimir Putin, to come together in a meeting. The focus on negotiations over a peace in Ukraine continues to impact the performance of defense stocks, with Rheinmetall being one of the key players in this sector.
US President Donald Trump has expressed his support for arranging a trilateral meeting between Zelenskyy and Putin, hoping for lasting peace and indicating he is working to facilitate such talks. After his meeting with Zelenskyy, key European leaders, optimism has been renewed that a solution to end the Ukraine conflict may be found.
Rheinmetall, a German defence company (WKN: 703000), is considered a favourite among investors due to its strong portfolio in the defense sector. The supercycle for defense stocks is unlikely to end, even with a potential peace in Ukraine. This optimism has not only been met, but exceeded, as stated by German Chancellor Friedrich Merz.
However, Rheinmetall is anticipated to experience further volatility and potential consolidation extension in the short term. This volatility was evident on Tuesday, as these same defense stocks, including Rheinmetall, lost ground. Despite this short-term volatility, the long-term prospects for revenue and earnings growth among defense companies like Rheinmetall remain bright.
The defense sector, including Rheinmetall, is anticipated to regain momentum by the end of the third quarter. This renewed momentum can be attributed to the continued investment in rearmament by Europe, as they strive to better protect against future aggressors. After talks between Trump and Putin, defense stocks in Europe, including Rheinmetall, Renk, Hensoldt, and others, rallied on Monday.
Trump's aim to organize a meeting between Zelenskyy and Putin could potentially influence the defense sector's trajectory. The author holds direct positions in Rheinmetall, which could benefit from the price development resulting from the publication. It is essential to note that this article does not contain advertisements.
In conclusion, while the defense sector may experience short-term volatility, the long-term prospects remain positive. The potential meeting between Trump, Zelenskyy, and Putin, coupled with Europe's continued investment in defense, bodes well for companies like Rheinmetall.
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