Defense stocks in Europe and US soar to record highs

Defense stocks in Europe and the US rose on Monday as the market fell after news that Germany would increase military spending in response to Russia's invasion of Ukraine, Reuters reported.

German Chancellor Olaf Scholz said on Sunday that defense spending in Europe's largest economy would be increased to 2% of gross domestic product, up from 1.53% in 2021.

Shares in Britain's largest defense company BAE and Germany's Rheinmetall surged to record highs shortly after Monday's open, up 13.9% and 29.9%, respectively. Both have great access to the arms and ammunition market.