Troubled World Heralds Next Stage of the Defense Stocks Rally

Battlefield equipment at the Rheinmetall AG pavilion at the DEFEA international defense exhibition in Athens.Photographer: Nick Paleologos/Bloomberg

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By Isolde MacDonogh, Michael Msika, and Sangmi Cha

January 10, 2026 at 9:30 AM UTC

If the tumultuous first 10 days of 2026 have convinced investors in Europe and Asia of anything, it’s that defense stocks are poised for another strong year.

In Ukraine, January has brought fresh attacks as the war pushes deep into another winter. But it’s the US swoop on Venezuela to capture its leader and Donald Trump’s repeated assertions that America should control Greenland rather than NATO partner Denmark that have caused the most alarm.