Global defense stocks advanced on Wednesday after US President Donald Trump, in a marked rhetorical shift, expressed support for Ukraine’s ability to retake Russian-occupied territory.
The comments, published overnight on Trump’s Truth Social platform, fueled gains in European and Asian defense equities.
US defense names also traded marginally higher in pre-market hours.
Trump’s comments signal policy shift
Trump said that with the support of the European Union and NATO, Kyiv was “in a position to fight and WIN all of Ukraine back in its original form.”
The US president’s remarks mark a departure from his earlier position that Ukraine might need to cede territory in peace negotiations, an approach Washington has tried to broker since the start of his second mandate.
Trump linked his updated view to a better understanding of the military and economic positions of both countries, describing Russia as a “paper tiger.”
He added that Moscow is facing “economic trouble” as the war continues.
In separate comments on Tuesday, Trump said NATO members should shoot down Russian aircraft entering alliance airspace, following reported incursions in Poland, Romania and Estonia.
Ukrainian President Volodymyr Zelenskyy welcomed Trump’s post, calling it evidence of “strong cooperation.”
He said on X that Ukraine “highly values his resolve to help end this war.”
The Kremlin also reacted, with spokesperson Dmitry Peskov noting that President Vladimir Putin “highly values Trump’s willingness to help” find solutions.
However, Moscow rejected the characterization of Russia as a “paper tiger.”
European defense stocks rally
Trump’s statements helped lift European defense stocks, which were among the top performers on the pan-European Stoxx 600 index in Wednesday morning trade.
German tank parts manufacturer Renk rose around 5.1%, while currently trading at 2.33%, while Italian defense company Leonardo and Swedish defense giant Saab advanced more than 3% and 4% respectively.
German defense firm Hensoldt gained 4.5%.
Hensoldt’s Chief Financial Officer, Christian Ladurner, said Trump’s comments reaffirmed the sector’s long-held position that Russia will continue to challenge Europe.
“We see that the US is more and more, I would say, seeing the reality, what is really happening and what has happened. So, this is encouraging for us,” he told CNBC.
Ladurner emphasized that while Trump’s words do not change the broader industry outlook, they align with expectations that European governments will continue to prioritize defense spending and readiness in response to Russian actions.
Asian and US defense stocks mixed
In Asia, defense stocks also climbed. South Korean firms Hanwha Aerospace, Korea Aerospace, and Hyundai Rotem all advanced between 2% and 5% in Wednesday trading.
The sector’s gains reflect expectations of sustained demand for defense capabilities amid geopolitical tensions.
In the United States, major defense names were also trading slightly higher in pre-market activity.
Boeing, Lockheed Martin and RTX and Northrop Grumman were marginally higher.
Overall, Trump’s shift in tone injected momentum into defense equities globally, reinforcing investor expectations that heightened geopolitical risk will continue to support the sector.
While both Kyiv and Moscow interpreted his remarks differently, markets focused on the likelihood of ongoing Western military and financial commitments to Ukraine, a dynamic that has consistently underpinned defense stock performance since the start of the conflict in 2022.
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