European defense stocks experienced a decline as market speculation arose about a potential ceasefire agreement between Israel and Hezbollah in Lebanon. Shares of major defense companies such as BAE Systems, Saab, and Leonardo initially dropped by 1.4%, 1.7%, and 1.2% respectively, although the losses were later reduced.
Earlier, Israel's ambassador to the United States mentioned the possibility of reaching a ceasefire agreement with Hezbollah within a few days, which contributed to the market's reaction. Investors are closely monitoring the situation, as any confirmed agreement could significantly impact defense stocks.
