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
Our news & analysis is now part of Defence Insight®
A Basic-level or higher Defence Insight subscription is now required to view this content.
More from Defence Notes
-
![SOF Week 2026: US military tests AI algorithm to support missions in low-light scenarios]()
SOF Week 2026: US military tests AI algorithm to support missions in low-light scenarios
The US Army and USAF are evaluating an AI-enabled imaging capability from Deepnight designed to enhance low-light and no-light operations across multiple platforms and environments.
-
![Industrial capacity under scrutiny as US approves further $8.6 billion Middle East arms sale]()
Industrial capacity under scrutiny as US approves further $8.6 billion Middle East arms sale
The fast-tracked emergency approvals come as the conflict in the Middle East stretches out into its third month, after Iranian attacks depleted US allies’ missile stockpiles and testing air defence systems.
-
![Intelligence innovation: From data overload to decision advantage (Podcast)]()
Intelligence innovation: From data overload to decision advantage (Podcast)
As militaries face an overwhelming flow of data, the challenge is shifting from collection to delivering fast, actionable insights that drive decision-making. Advances in AI and data integration are helping armed forces move beyond siloed systems to generate real-time intelligence across domains and allies.
-
![SAHA 2026 to Convene the Global Defence Ecosystem]()
SAHA 2026 to Convene the Global Defence Ecosystem
SAHA 2026 brings global defence and aerospace leaders to Istanbul for partnerships, launches, panels and high-value meetings.
-
![Teledyne FLIR adds GPS-denied 3D-mapping capabilities to its CBRN uncrewed platforms]()
Teledyne FLIR adds GPS-denied 3D-mapping capabilities to its CBRN uncrewed platforms
In a partnership with Emesent, Teledyne FLIR will equip its autonomous air, ground and detection systems with the Hovermap LiDAR payload in a move that highlights a broader market shift towards modular architectures, shared payloads and interoperability across platforms.
-
![US seeks 32% boost for missile defence budget with $23 billion earmarked for interceptors]()
US seeks 32% boost for missile defence budget with $23 billion earmarked for interceptors
The Pentagon’s proposed budget for the next fiscal year includes an impressive increase in the procurement of interceptors, with the number of the US Army’s PAC-3 MSE rounds expanding by 683%, the US Navy’s Standard Missile by 365% and the MDA’s SM-3 IIA by more than 1,000%.
