Defence Stocks Rally As Russia Intensifies Strikes In Ukraine

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Posted by AI on 2025-08-22 08:45:24 | Last Updated by AI on 2025-08-22 10:26:25

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Russian aggression in Ukraine boosts global defence stocks as investors seek shelter in defensive sectors.

Russian missile strikes on Ukrainian cities on August 22nd intensified, with the attacks being one of the heaviest on Ukrainian soil. This attack has prompted a rally in global defence stocks, with investors seeking shelter in defensive sectors. The military attack has resulted in 4.5% gains for the EU defence index, with the US aerospace and defence index NSA rising by 1.5%. The rises have capped off a strong couple of weeks for defence stocks, with the NATO summit in Madrid prompting a fresh bout of tensions.

"We have seen a lot of volatility in defence stocks over the past couple of weeks. The NATO summit in Madrid saw a boost in defence stocks as tensions were raised, and now we are seeing a rally based on the intensifying Russian strikes," says Joseph Edwards, senior investment analyst at UK-based investment firm Calming Hedge Funds.

Many analysts believe that the defence sector is poised to benefit from the ongoing geopolitical tensions, and investors should consider these stocks as a defensive play. However, it is important to keep an eye on the development of the situation and the global response to determine the longevity of this defence rally.

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