German stock market records biggest gains after Starmer announces ‘coalition of the willing,’ as investors expect big splurge in defence spending

European shares are pushing higher, with Germany’s Dax the standout performer, up by 1.2%, as Europe’s big defence names jumped on expectations of a splurge in defence spending.

The euro rallied by 0.65% to $1.0442 after hitting a 2 1/2 year low against the dollar last Friday, while the pound rose by 0.5% to $1.2641.

There are 30 European countries in NATO and we expect many of them will soon commit to much higher defence spending.