JPMorgan stated that this adjustment will take effect on June 20. Rheinmetall’s stock price has surged approximately threefold year-to-date, soaring 26% in May alone, driving its market value to nearly €87 billion. Against the backdrop of the ongoing Russia-Ukraine conflict and European nations reassessing defense budgets, defense companies have become the most direct beneficiaries.
In contrast, Kering Group has declined by 28% year-to-date. German defense giant Rheinmetall, with its skyrocketing stock price, is set to replace Gucci’s parent company Kering in the Euro Stoxx 50, Europe’s most important stock benchmark index. According to JPMorgan strategist Pankaj Gupta on June 3, citing index compiler Stoxx Ltd., this adjustment will take effect on June 20. Rheinmetall’s stock price has surged about threefold year-to-date, jumping 26% in May alone, pushing its market value to nearly €87 billion ($98 billion). This scale already exceeds more than half of the existing constituents in the Euro Stoxx 50 index. Since February 2022, Rheinmetall’s stock price has surged approximately 1,800%. Amid the ongoing Russia-Ukraine conflict and European countries reevaluating defense budgets, defense firms have emerged as the most direct beneficiaries. In stark contrast to Rheinmetall, Kering Group has struggled. The luxury giant’s stock hit its lowest point since 2016 in April, with a cumulative decline of 28% year-to-date. The primary factors dragging its performance are a sharp drop in consumer spending, while Trump’s tariff policies have further worsened the outlook for the entire luxury industry. Rheinmetall’s inclusion in this widely tracked index may further boost investor sentiment in a market environment dominated by passive investment funds. Risk Warning and Disclaimer: The market carries risks, and investment requires caution. This article does not constitute personal investment advice and does not consider individual users’ specific investment objectives, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article suit their particular circumstances. Investments made based on this are at your own risk.
