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Markets Hold Their Nerve as Trump Seeks Bigger Defense Budget

Commentary points to defense outperformance with investors treating geopolitical shocks as noise.

Overview

  • Columns note the extraction of Nicolás Maduro, a seized Russian tanker and talk of a Greenland move, yet oil prices were little changed and Copenhagen’s index gained 4.5% this year.
  • President Trump posted that the 2027 U.S. military budget should total $1.5 trillion, signaling a substantial increase from prior figures.
  • Analysts say potential spending growth could buoy defense contractors, citing a RUSI report on pressures from China’s stealth jets and highlighting interest in Boeing, BAE Systems and space-defense funds.
  • Market resilience examples include a 55% one-year rise in BlackRock Latin American Investment Trust, strength in Maersk, and a Novo Nordisk rebound after U.S. authorization of an oral Wegovy.
  • Britain and France discussed sending troops to Ukraine if a peace deal is reached, while investors focused more on economic fundamentals than political theater.