0837 GMT - Most European defense stocks dipped after the U.S. and the European Union announced a trade deal. France's Thales loses 3.5%, while Germany's Renk Group trades 2.7% lower and Sweden's Saab falls 2.3%. Rheinmetall, one of Europe's biggest arms manufacturers, falls 1.6%. German sensor-provider Hensoldt loses 2.5%, Italy's Leonardo dips 1.2% and Spain's Indra Sistemas is down 1.95%. British defense stocks, albeit outside the EU, are also down, with Babcock International falling 1.4%, BAE Systems trading 0.6% lower, and QinetiQ losing 0.4%. In contrast, France aircraft maker Dassault Aviation rises 1.9%. Several EU companies that manufacture in the U.S. had previously said that they expect to avoid a direct impact from the tariffs. However, as part of the trade deal, the EU has agreed to buy more U.S. weapons, in a blow to the bloc's efforts to build its own defense industry. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

July 28, 2025 04:37 ET (08:37 GMT)

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