BAE Systems led advances on the FTSE 100 during early trading, becoming the benchmark index’s top performer after U.S. President Donald Trump pledged to sharply boost military spending.

Defense shares climbed across Europe and Asia after U.S. President Donald Trump urged NATO allies to shoot down Russian aircraft violating their airspace.

Shares of Asian defense and aerospace companies inched higher, while many US and European defense firms saw their share value drop as tensions between India and Pakistan rise.

Rheinmetall, Europe's largest ammunition manufacturer, has surpassed Volkswagen, the continent’s leading carmaker, in market valuation.

European stocks saw a boost while bonds tumbled following Germany's announcement to release hundreds of billions of euros for defense and infrastructure.

Defence stocks saw a significant rise in early trading as Europe prepares to boost its military spending to ensure peace in Ukraine.

US defense contractors are on shaky ground just a month into the new administration — taking a backseat to European peers — as mounting concerns over a deluge of policies including a tightened military spending budget send shock waves across the government-sensitive group.