U.S. Action in Venezuela Reminds Europe of Need to Spend on Defense -- Market Talk

Dow Jones01-05

1231 GMT - The U.S. military action in Venezuela could reinforce the need for Europe to take more responsibility for its own security and increase its defense spending, Morgan Stanley analysts say. This would underpin Morgan Stanley's overweight rating on the European defense sector, according to a research note. The intervention seemingly shows the Trump administration's focus on issues closer to home, the analysts say. U.S. defense stocks largely shrugged off recent U.S. boat strikes in the Caribbean, but the ousting of Venezuelan leader Nicolas Maduro marks a potentially significant escalation, they add. Significant escalation from here in Venezuela isn't priced into U.S. defense stocks as of Monday, they note. Rheinmetall is up 7.3%, Leonardo advances 6.25%, BAE Systems gains 5% and Thales increases 4.8%. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

January 05, 2026 07:31 ET (12:31 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment