Rheinmetall AG shares rose 3 percent on Monday. The stock led the DAX index while continuing a recovery from recent lows.
Spanish bank Santander issued a buy recommendation for the defense contractor. Market speculation regarding Europe's future defense strategy also fueled the gains.
Reports indicate the U.S. Department of Defense may cancel plans for a medium-range missile unit in Germany. This potential shift suggests Europe must prioritize domestic defense solutions. CDU foreign policy expert Roderich Kiesewetter stated that Europe must take more responsibility for its conventional defense.