European Markets Stagnate as Defence Stocks Slide on German Policy Shift

The aerospace and defense industry faced its sharpest downturn in decades, with Rheinmetall recording its most severe single-day decline since October 1998. The retreat followed the German government's decision to scrap plans for its first major warship project since the Second World War, a move that rattled investor confidence in regional defense spending commitments.

Market sentiment found some stability elsewhere. Real estate stocks climbed after Segro publicly rejected a $16.6 billion takeover bid from the U.S.-based logistics giant Prologis, signaling strength in the sector's valuation. Simultaneously, European chipmakers tracked a rally in Asian memory stock markets, providing a necessary counterweight to the broader industrial volatility.