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Home > Finance > Ukraine-exposed stocks rally, defence dips on Ukraine peace hopes

Ukraine-exposed stocks rally, defence dips on Ukraine peace hopes

Published by Global Banking and Finance Review

Posted on January 22, 2026

2 min read

Last updated: January 22, 2026

Ukraine-exposed stocks rally, defence dips on Ukraine peace hopes - Finance news and analysis from Global Banking & Finance Review

Tags:equity European economies

Quick Summary

Stocks linked to Ukraine surged as defence shares fell on peace talk prospects. Raiffeisen, Wizz Air, and Ferrexpo saw notable gains.

Stocks Linked to Ukraine Surge as Defence Shares Decline on Peace Prospects

Market Reactions to Ukraine Peace Talks

LONDON, Jan 22 (Reuters) - European stocks expected to benefit from an end to Russia's war in Ukraine rallied on Thursday, and defence stocks dropped after Ukrainian president Volodymyr Zelenskiy said Ukrainian and Russian teams will have their first trilateral meeting with U.S. officials.

Zelenskiy discussed security guarantees and a plan for post-war recovery during his meeting with U.S. President Donald Trump in Davos.

Austrian bank Raiffeisen gained 6%, airline Wizz Air and travel firm Tui rose 9% and 4% respectively, while Ukraine-exposed miner Ferrexpo soared 19%. An index European materials and construction stocks rose as much as 2.9%, with Buzzi, Heidelberg Materials and Rockwool among the top gainers.

Performance of Ukraine-Exposed Stocks

All typically rally at times when markets see an increased prospect of a deal to end the war.

Decline in Defence Stocks

In contrast, an index of European defence stocks dropped 2.3%, set for its biggest daily fall since early December.

Saab dropped 4.3% and Rheinmetall 3.7%. Defence stocks had been under pressure already after Trump backed off tariff threats towards Europe and ruled out taking Greenland by force.

(Reporting by Alun John; editing by Danilo Masoni)

Key Takeaways

•Ukraine peace talks lead to stock market rally.
•Defence stocks decline amid peace prospects.
•Raiffeisen, Wizz Air, and Ferrexpo see significant gains.
•European materials and construction stocks rise.
•Defence stocks face pressure from geopolitical shifts.

Frequently Asked Questions about Ukraine-exposed stocks rally, defence dips on Ukraine peace hopes

1What is a stock?

A stock represents ownership in a company. When you buy a stock, you purchase a share of that company's assets and earnings.

2What is a defense stock?

Defense stocks are shares in companies that manufacture weapons, military equipment, or provide services to the military.

3What is a market index?

A market index is a measurement of the performance of a group of stocks, representing a particular market or sector.

4What are European economies?

European economies refer to the economic systems of countries in Europe, characterized by various levels of development and integration.

Market Reactions to Ukraine Peace Talks

Zelenskiy discussed security guarantees and a plan for post-war recovery during his meeting with U.S. President Donald Trump in Davos.

Performance of Ukraine-Exposed Stocks

All typically rally at times when markets see an increased prospect of a deal to end the war.

Decline in Defence Stocks

In contrast, an index of European defence stocks dropped 2.3%, set for its biggest daily fall since early December.

Saab dropped 4.3% and Rheinmetall 3.7%. Defence stocks had been under pressure already after Trump backed off tariff threats towards Europe and ruled out taking Greenland by force.

(Reporting by Alun John; editing by Danilo Masoni)

Frequently Asked Questions

1What is a stock?

A stock represents ownership in a company. When you buy a stock, you purchase a share of that company's assets and earnings.

2What is a defense stock?

Defense stocks are shares in companies that manufacture weapons, military equipment, or provide services to the military.

3What is a market index?

A market index is a measurement of the performance of a group of stocks, representing a particular market or sector.

4What are European economies?

European economies refer to the economic systems of countries in Europe, characterized by various levels of development and integration.