How are European defense stocks performing amid geopolitical uncertainty?

European stocks generally opened lower due to persistent geopolitical uncertainty in the region. However, defense stocks are bucking this downward trend, leading gains in the market. This positive performance is directly attributed to higher allocations for military spending across European countries. As governments respond to growing security concerns, defense companies are benefiting from increased budget commitments to strengthen military capabilities. This sector-specific growth highlights how geopolitical tensions can create divergent market outcomes, with defense emerging as a resilient investment area despite broader market caution.