1114 GMT - European defense stocks shouldn't see a market-shock drop if Ukraine agrees to a peace deal with Russia, Morningstar's Loredana Muharremi says. This is because European defense valuations are underpinned by structural increases in defense budgets across Europe, rather than by short-term revenues from Ukraine, and these are unlikely to be reversed even if there is a peace deal, she says. Ukraine-related orders represent a small share of arms makers' sales, she adds. Morningstar's top pick is Rheinmetall, which is down 5%. Renk Group and Hensoldt each falls 4%, Saab losses 3.55%, Leonardo and Thales drop 2.5%, and BAE Systems decreases 2.1%. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

November 24, 2025 06:14 ET (11:14 GMT)

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