Momentum spilled into Europe, where the Stoxx Europe Aerospace and Defense index increased 1.1% during the session. Component stocks Renk and Leonardo opened more than 4% higher before giving back a portion of the rise; they were last quoted up 2.6% and 2.7%, respectively. The pan-European move followed a similar pattern seen in U.S. futures, with initial double-digit gains in some names moderating as the session unfolded.
Several defense contractors in the Asia-Pacific region also moved higher. Mitsubishi Heavy Industries advanced 2.4% in Tokyo, while Bharat Electronics edged 0.3% higher in Mumbai. Although the region’s benchmarks were mixed, the defense sub-sector outperformed broader indices as traders assessed the implications of a larger U.S. procurement budget for international supply chains.
Trump’s proposed figure, if enacted, would represent a substantial increase from the roughly $886 billion authorized for the U.S. Department of Defense in fiscal 2024. Historical spending levels, available from the Congressional Budget Office, show that nominal defense expenditures have never approached the $1.5 trillion mark within a single fiscal year.
The former president’s announcement came amid escalating geopolitical developments involving Venezuela. U.S. forces captured Venezuelan President Nicolás Maduro and his wife in a large-scale overnight operation over the weekend, according to American authorities. On Saturday morning, officials said both had been indicted in New York on drug-trafficking charges. Details of the operation, including its location and the units involved, were not disclosed.
Imagem: Internet
Following the arrest, Trump declared that the United States would assume control of Venezuelan oil resources indefinitely. He said between 30 million and 50 million barrels of sanctioned Venezuelan crude would be transferred to U.S. custody and sold at prevailing market prices. According to Trump, the resulting revenue will be overseen by him and directed toward “benefit of the people of Venezuela and the United States.” The mechanism for that oversight was not outlined, and no timetable was provided.
Trump also reiterated interest in acquiring Greenland, a position he previously floated in 2019. The renewed assertion was made without elaboration on potential negotiations with Denmark, which administers the Arctic territory. Danish officials did not immediately respond to the latest comments.
The budget proposal must ultimately be considered by Congress, which holds constitutional authority over federal spending. No bill has yet been introduced to formalize the $1.5 trillion request, and congressional leaders have not indicated whether they will back the increase. Until legislative language is filed, the figure remains an objective without statutory force, though Thursday’s market reaction suggests investors are assigning a higher probability to increased Pentagon outlays in the coming years.
Crédito da imagem: CNBC
