European arms makers extend rally on Ukraine talks

(Reuters) - European arms manufacturers shares extended their rally on Tuesday on prospects of higher defence spending, ahead of talks between U.S. and Russian officials over a possible Ukraine peace deal.

Shares in Rheinmetall, Renk, Hensoldt and steelmaker Thyssenkrupp opened up 3-7%, before paring some of those gains.

These stocks have risen by between 15% and 25% so far this week, with Thyssenkrupp being the top gainer.

(Reporting by Linda Pasquini; Editing by Amanda Cooper)