European Defense Stocks in Play

Defense spending for Europe is set to expand — bullish for regional Defense names

Highlights

• Defense spending for Europe is set to expand — bullish for regional Defense names

• U.S. consumers — not so resilient anymore?

• The initial breakout in the S&P 500 is volatile and tentative at best

• The Canadian dollar has more room to appreciate as bearish bets unwind

Key Takeaways

• ECB Signals More Rate Cuts Ahead: Over the weekend, ECB policy member Fabio Panetta stated that he believes that the central bank should not hold up one bit on more rate cuts and seems convinced that (i) the 2% inflation target is within sight and (ii) that the risks are squarely to the downside on the inflation file. Quite a contrast to the message being delivered by the Fed — and a reason to lean bearish on the euro.