European defense stocks jump after Healey named U.K. finance minister

According to CNBC, European defense stocks rose on Tuesday after John Healey was appointed as U.K. Prime Minister Andy Burnham's finance minister, with Babcock International up 4.1%, QinetiQ up 3.1% and Avon Technologies up 2%. Citi analyst Charles J Armitage said the appointment was likely to be well received by markets and could be positive for defense stocks, while noting that spending priorities in the Treasury remain unclear. Dan Coatsworth of AJ Bell said investors were viewing the change as removing the risk of a new chancellor resisting additional defense spending, though he warned that many positives may already be priced in. Ben Kumar of 7IM said Healey was widely expected to prioritize defense, adding that questions remain over funding, procurement and the broader fiscal stance.