Part 5/9:
Amidst this backdrop, European defense stocks such as Germany's Rheinmetall, Italy's Leonardo, and the UK's Rolls-Royce have profited from increased military spending initiatives. German DAX index has surged over 20% this year, while France's CAC40 has risen around 12%. Lewis Grant, a senior portfolio manager at Federated Hermes, noted, "Capital is flowing towards Europe, boosted by confidence in strong institutions, governance, and equity markets."
In Asia, Hong Kong's index saw a 10% increase, driven primarily by Chinese technology firms, particularly following the emergence of AI startups demonstrating competitive capabilities at reduced costs.