What does the US decision to pause Ukraine support mean for the war and the stock markets?
Ukraine has relied on support from NATO countries for weapons and munitions. (Photo: Ukrainian Ministry of Defence)
NATO and other Western countries had been singing from the same song sheet since the full-scale invasion of Ukraine by Russia three years ago but the alliance has been weakened as the new US administration under President Donald Trump pauses military aid to Ukraine.
The US decision to halt the supply of military aid to Ukraine was announced after stock markets closed on 3 March but it could see a boost to defence stocks across Europe after that continent’s countries repeated their support for Ukraine.
Germany’s Rheinmetall stock price jumped 14% after the weekend’s meeting of European leaders, closing at €1,002 (US$1,053) before the weekend and rising to €1,184 when the market opened. UK’s BAE Systems jumped 16% with Leonardo up 10% before some settling.
Rheinmetall’s jump was also partially driven by the belief that the new incoming German government could provide another dedicated defence fund. The company, however, also
Already have an account? Log in
Want to keep reading this article?
More from Defence Notes
-
![Ireland spells out $2.3 billion shopping list in five-year defence spending plan]()
Ireland spells out $2.3 billion shopping list in five-year defence spending plan
Ireland’s multi-annual investment in capital defence spending is set to rise from €300m in 2026 to €360m in 2029–2030 with major upgrades across land, air, maritime and cyber domains.
-
![Canada to deepen integration of multi-domain capabilities to strengthen its defences]()
Canada to deepen integration of multi-domain capabilities to strengthen its defences
The Canadian Department of National Defence has created new organisations to manage the procurement and integration of all-domain solutions and allocated US$258.33 million to strengthen production capacities.
-
![US National Security Strategy prioritises advanced military capabilities and national industry]()
US National Security Strategy prioritises advanced military capabilities and national industry
The 2025 NSS has emphasised investment in the US nuclear and air defence inventory and national industry, but it leaves multiple unanswered questions on how the White House will implement this approach.
-
![Canada set to look away from its neighbour and across the Atlantic for partners]()
Canada set to look away from its neighbour and across the Atlantic for partners
While non-EU UK struggles to join the Security Action for Europe initiative, which provides loans for defence programmes, Canada has become the first country outside Europe to get access – and did so for a nominal fee.
-
![NATO experiments with solutions to integrate networks, AI and uncrewed systems]()
NATO experiments with solutions to integrate networks, AI and uncrewed systems
During the latest edition of the NATO DiBaX, the alliance tested multiple capabilities to inform requirements for future efforts.
