Aerospace and Defense ETF
Despite escalating sanctions into Monday, Russia and Ukraine remain at an impasse. As a result, aerospace and defense stocks are maintaining a bid over the past few weeks, surging past current buy points to start the week.
News that Europe and the U.S. sent weapons to Ukraine boosted prices in aerospace and defense stocks. U.K.-based BAE Systems (BAESY) led the rally, spiking to record highs. In addition, leading aerospace and defense stocks, Lockheed Martin (LMT), Northrop Grumman (NOC), Rada Electronic Industries (RADA), General Dynamics (GD), L3Harris Technologies (LHX), and Raytheon (RTX) rallied to fresh 52-week highs.
The Direxion Aerospace and Defense Bullish 3x Leveraged ETF (DFEN) is breaking out.
This continuous bid is suggesting the stocks in the group are set to accelerate along its current path.
Russian President Vladimir Putin put his nuclear forces on high alert over the weekend in response to escalating tensions and further economic sanctions.
At the same time, Ukrainian President Volodymyr Zelenskyy spoke with the UN Security Council appealing for more arms and ammunition. European allies Germany and Sweden, among other countries, have been sending weapons into Ukraine.
Switzerland also announced it was taking action in countering aggression.
Germany announced a historical increase in its defense budget.
The Russian ruble set a record low against the U.S. dollar on Monday, while Russia shut down its stock market to avert further declines. Russia’s central bank doubled its target interest rate from 9.50% to 20%, while the U.S. put measures in place to block the central bank efforts to shore up its financial system. Transactions in U.S. dollars have been blocked as well.