Bellicose rhetoric from the US on the need for Europe to play a bigger role in defence is unleashing a fresh rally in the continent’s defence stocks. Demand for tanks, soldiers and ammunition is a given. Less clear is whether industry is in a position to capitalise on it.

Defence stocks have risen this week as European leaders met on Monday to discuss national security and support for Ukraine. Should you invest in defence?

LONDON (Reuters) -British Prime Minister Keir Starmer said on Monday his country's national security was facing a generational challenge and that it was crucial for all of Europe to spend more on defence.

Prime Minister Keir Starmer said on Monday the UK and Europe face a "generational" national security challenge ahead of an emergency meeting of the continent's leaders.

Sir Keir Starmer, writing in this newspaper, said Europe was facing a “once-in-a-generation moment” for the collective security of the Continent. Ahead of the emergency summit in Paris, the Prime Minister also indicated he would be prepared to send British troops to Ukraine as part of a peacekeeping force should one be agreed.