Why Eurozone Defense Stocks Are Outperforming

The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets · Aug 4, 2026 · 8m · transcript

In this episode, Lucas and Luna explain why European defense stocks have become the continent's hottest trade in the summer of 2026. With the VGK ETF up more than three percent in five days and the iShares MSCI Spain ETF up over five, investors are piling into a sector that was once considered politically toxic. The hosts break down the shift from austerity to rearmament, the structural funding commitments from NATO members, and how a new generation of European defense primes is winning orders. They also touch on the surprising resilience of the euro despite a stronger dollar, and what…