Rheinmetall plumments 13%; defense stocks fall on Germany warship plans

Defense stocks fell on Wednesday after a report that Germany would abandon plans to build six warships, raising investor fears that a boost to defense contractors from rising government spending may not be fully realized.

Berlin plans to cancel the multi-billion-euro project to build F126 frigates. accordingly The Financial Times quoted two people familiar with the matter. This would be the largest warship commission since World War II.

German ammunition manufacturer RheinmetallGerman shares, a major beneficiary of German government contracts, fell as much as 13% in morning trading. Other stocks listed in Germany Hensoldt And colour fell 5% and 3.8% respectively. Sweden’s saab Italy traded down 3.1% Leonardo lost 3.7% and the British giant BAE Systems It fell 1.6%.

This is breaking news. Please refresh for updates.