Rheinmetall (RHM) Stock Drops 13% After Germany Cancels Warship Plans

Rheinmetall (RHM) shares fell 13% following Germany's decision to scrap plans for building six F126 frigates, which was expected to be a major contract for defense contractors. The project was valued in the multi-billion-euro range and represented the largest warship commission in Germany since World War II. Other defense stocks also declined; Hensoldt dropped 5%, Renk decreased by 3.8%, Saab fell 3.1%, Leonardo was down 3.7%, and BAE Systems declined 1.6%. This cancellation raises concerns about future government spending on defense.