1015 GMT - European defense names falter in early European trade as U.S.-Iran tensions appear to cool, with reports of negotiations between the countries. Hensoldt falls 2.5%, while BAE Systems and fighter jet-maker SAAB fall 2% and 1.6%, respectively. Rheinmetall drops 1.5% and Spanish company Indra Sistemas slides 1.6%. Separately, Hensoldt's revenue could fall slightly below guidance for fiscal 2025, Jefferies analysts write. BAE Systems could also attract short-seller attention, as its exposure to both U.S. and European markets could drag on orders as European governments look to domestic procurement, the analysts say. (josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

February 02, 2026 05:16 ET (10:16 GMT)

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