London, Jan 19, 2026, 13:02 GMT — Regular session
- Chemring shares slipped in mid-session trading, standing out as one of the few laggards in an otherwise steady UK defence sector.
- London equities dropped following U.S. President Donald Trump’s threat to impose tariffs on Britain and seven other European countries.
- Attention turns to the Feb. 1 tariff kickoff and Chemring’s annual meeting on Feb. 20.
Chemring Group PLC shares slipped 0.2% to 545 pence after opening at 550 pence, with intraday moves ranging from 542 to 555 pence, based on delayed pricing. BAE Systems edged up 0.7%, while QinetiQ climbed 3.4% in the same period. Chemring saw about 672,000 shares change hands. (London South East)
The modest shift carries weight given it came amid a selloff in London stocks driven by political worries rather than earnings. The FTSE 100 slipped 0.6%, with the FTSE 250 down 0.9%. Yet, the aerospace and defence sector edged up 0.4%, Reuters noted. (Reuters)
Markets reacted sharply to Trump’s weekend threat of an additional 10% tariff starting Feb. 1 on imports from Britain, Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland. The levy would jump to 25% by June 1 if there’s no deal on Greenland. “Hopes that the tariff situation has calmed down for this year have been dashed for now,” said Holger Schmieding, chief economist at Berenberg. (Reuters)
European stocks slipped, with the STOXX 600 dropping 1%, while a volatility index for euro zone equities climbed to its highest since November. This comes during a week marked by the World Economic Forum in Davos, Reuters reported. “Trump’s actions over the weekend have inflamed geopolitical risks while also reintroducing trade uncertainty,” said Kyle Rodda, senior financial market analyst at Capital.com. (Reuters)
Defence spending grabbed attention in Britain again. The Ministry of Defence revealed a £205 million contract extension with QinetiQ to provide ongoing technical and engineering support for the RAF’s Typhoon jets. (Gov)
Chemring has carried the broader defence rally into 2026, despite light trading on Monday. Its full-year results from December revealed a record order book of £1.345 billion, covering about 76% of anticipated revenue for 2026, with performance tracking as planned. The company also signaled capex rising to £100-110 million next year, driven mainly by higher costs in Norway, and expects cash conversion between 80% and 85%. Chief executive Michael Ord described the outlook for steady defence spending as “strong.” (Chemring)
The defence sector often shifts quickly with the news, and headlines can turn on a dime. A thaw in the tariff dispute or easing geopolitical tensions might sap the current momentum. Meanwhile, Chemring’s cash conversion faces pressure if costs in Norway rise further or government spending remains irregular.
Investors have Chemring’s annual general meeting penciled in for Feb. 20, keen for updates on order intake, capex, and the 2026 run-rate. (Chemring)
Income-focused investors have April marked on their calendars. Chemring’s dividend page lists a final payout of 5.3 pence, with a record date set for April 10, 2026. (Chemring)
Looking ahead to the week, political developments will take center stage: watch for any EU reaction and fresh White House updates ahead of the Feb. 1 tariff deadline. As for Chemring, its next chance to steer the story in its favor comes with the AGM on Feb. 20.
