Defense stocks surge as Germany prepares to greenlight $60 billion military spending boost.

Defense Spending Approval: German lawmakers are expected to approve a defense spending package exceeding 50 billion euros, aimed at enhancing national security in response to the Ukraine war, with significant allocations for military personnel and equipment upgrades.

Market Reaction: European defense stocks rose in anticipation of the budget approval, with notable gains in German defense companies like Rheinmetall and Hensoldt, reflecting investor optimism about increased military spending.

Historical Context: This defense procurement package is considered the largest single approval for defense equipment in Germany's post-war history, marking a significant shift in the country's military investment strategy after years of underfunding.

Future Implications: The approval is expected to improve revenue visibility for defense firms and position Europe as a potential defense hub, with companies like Rheinmetall being recognized as leaders in the armaments sector.