European defense company stocks and wholesale gas prices declined following talks between U.S. and Ukrainian officials in Geneva aimed at establishing a peace framework for the ongoing Ukraine-Russia war. The U.S. and Ukraine mentioned they have developed an “updated and refined peace framework” after previous criticisms of a U.S.-backed proposal that contained several demands from Moscow.
U.S. Secretary of State Marco Rubio expressed optimism about the discussions’ progress, stating, “I think we made a tremendous amount of progress… and I feel very optimistic that we’re going to get there in a very reasonable period of time, very soon.” Ukrainian officials also indicated positive developments, suggesting that they were moving towards a resolution that could lead to a just and lasting peace. Ukraine’s European allies proposed their own plan, emphasizing that negotiations regarding territory should only commence after a ceasefire is established.
Despite the discussions, violence continued, with a Russian drone strike in the city of Kharkiv resulting in four fatalities and multiple injuries. The anticipation engendered by the talks appeared to influence market sentiment, as major German defense firm Rheinmetall’s shares fell by 3.5%, and Renk, a manufacturer of military vehicle components, saw a decline of over 4%. In London, shares for defense contractors Babcock and BAE Systems dropped by 1.4% and 1%, respectively.
Additionally, European natural gas prices fell to an 18-month low, dropping below €30 per megawatt-hour. This decline in prices was attributed to discussions surrounding a potential resolution to the conflict, highlighting a cautious optimism among traders regarding gas supply adequacy through the winter months.
Source: https://www.theguardian.com/business/live/2025/nov/24/bhp-walks-away-takeover-approach-anglo-mining-merger-uk-budget-cbi-ftse-pound-business-live-news