US president Donald Trump. Photo: Reuters
Bloomberg
US president Donald Trump’s suggestion that he will request a roughly 50pc increase in the US military budget has fuelled a global rally in weaponry makers, the latest leg of a strong start to a year that looks set to be dominated by geopolitical conflict.
In the US, Northrop Grumman and Lockheed Martin surged at least 9.3pc before paring some gains, rebounding from Wednesday’s drop sparked by Mr Trump’s demands to limit executive pay and shareholder returns. Peers also rose in Asia. A Goldman Sachs Group basket of European defence stocks rose as much as 3.8pc yesterday, extending its gain for the week to about 15pc.
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