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Weapons and wealth: Market reaction to Europe’s defense push

Year: 2025

Type: article

Abstract: This paper analyzes abnormal returns around the EU’s Readiness 2030 defense initiative. Defense stocks saw strong positive returns, especially pre-announcement, while high-tech firms showed weak or negative returns—indicating no spillover effect to the tech sector and underscoring the role of industry classification in market reactions.

Source: Economics Letters

DOI: 10.1016/j.econlet.2025.112538

Authors: Nicola Comincioli, Michael Donadelli, Massimiliano Rizzati

Institutions: Fondazione Eni Enrico Mattei, University of Brescia

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,030

OpenAlex ID: W4413364987

FWCI: 3.723

Cites: 13

Cited by: 4

Related to: 10