European defence shares recorded a sharp drop of up to 7%, following statements by Kirillo Budanov, a senior adviser to Ukrainian President Volontimir Zelenski, that a peace agreement with Russia can be reached soon. Shares such as Rheinmetall, Hensoldt and Leonardo, which had been ejected 500% since February 2022, retreated significantly. Instead, construction companies and cement companies were strengthened over 5% due to expectations of post-war reconstruction. Analysts point out that the market questions whether governments will continue high defence spending, even though participants remain cautious about the outcome of the talks.