By Maitane Sardon

Shares of defense companies jumped after European leaders pledged to continue military support for Ukraine as part of a plan to end the war and defend the country from Russia.

At a meeting held in London on Sunday, British Prime Minister Keir Starmer said progress had been made in building a "coalition of the willing," in which Europe will lead the charge for securing peace and seek to involve the U.S.

At the meeting, which took place two days after U.S. President Trump's heated exchange with Ukrainian President Volodymyr Zelenskyy, Starmer said the U.K., France and other European countries would step up support for Ukraine, providing military assets and potentially troops on the ground.

Shares in European defense companies rallied at market open on Monday. Shares in London-listed aerospace and defense group BAE Systems jumped as much as 17% at the opening bell before paring some gains as the session advanced. France's Thales climbed 13.4% to 217.30 euros, while Germany's Rheinmetall and Italy's Leonardo rose more than 9% to 1,101.00 euros and 42.15 euros, respectively. QinetiQ group advanced 8.8% to 4.40 pounds, while Babcock International recorded a 7% gain to 7.17 pounds.

"The scenario that is emerging... increases the need for EU countries to increase military spending and makes it even more necessary and probable to look for business combinations at the European level to create champions capable of competing globally," Equita analyst Martino De Ambroggi said in a research note.

Write to Maitane Sardon at maitane.sardon@wsj.com

(END) Dow Jones Newswires

March 03, 2025 04:54 ET (09:54 GMT)

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