European defense stocks on Wednesday were among the clear winners of Donald Trump's shock Presidential victory on hopes of increased defense spending by the world's No. 1 economy.
Shares in BAE Systems, which manufactures military hardware ranging from bullets to battleships and counts the U.S. as its largest customer, rose by more than 4%, to trade as high as 571 pence ($6.33).
Shares in Cobham, which manufactures communications and monitoring equipment for military customers worldwide, rose by more than 6% to reach 155.0 pence before paring gains.
Meggitt, an engineering firm that manufactures components for aircraft, rose by nearly 2.5% to touch a high of 441.7 pence. The Bournemouth, England-based company earns 35% of revenue from military spending.
Thales' stock rose by close to 5%. The firm develops vehicle-based electronic systems for a range of industries, but 50% of its revenue come from sales of military equipment to governments.
Another big winner was Ultra Electronics, a systems and software developer that takes 60% of sales from military customers across the world.
The stock was up more than 5% during morning trading, trading as high as 1,916.0 pence.
Jefferies aerospace analyst Sandy Morris noted that Trump has called for for 90,000 additional active-duty army soldiers, 42 more navy ships, 100 more modern fighter aircraft, and increased nuclear and missile defense.