LONDON, Jan 12, 2026, 22:01 GMT
- After a strong rally earlier this month, Rheinmetall shares slipped 0.5% at the close
- Greenland once more dismissed the idea of a U.S. takeover, instead highlighting NATO as its primary defense partner
- NATO and European officials ramped up discussion on Arctic security while investors remained in “safe haven” mode
Rheinmetall (RHMG.DE) shares fell 0.5% to 1,890 euros on Monday, pulling back after a strong start to the year. Investors had been snapping up European defence stocks amid growing talk of Arctic security risks. (Marketscreener)
The stock moved after Greenland’s coalition government announced plans to intensify efforts to keep the island’s defence under NATO control, firmly rejecting any U.S. takeover “in any way.” (Reuters)
NATO allies are “discussing the next step” on Arctic security, Secretary General Mark Rutte said, highlighting concerns over increased Russian and Chinese activity as sea lanes open. Diplomats mentioned potential plans for an operation similar to NATO’s Baltic Sentry and Eastern Sentry missions, but no final decisions are on the table. (Reuters)
European defence commissioner Andrius Kubilius cautioned that a U.S. military takeover of Greenland could spell “the end of NATO.” He stressed that EU countries are bound to support Denmark if it faces military aggression. Kubilius also warned of possible trade repercussions for the United States stemming from such a breakdown. (Reuters)
European shares closed at a record high despite a volatile session, with the aerospace and defence index (.SXPARO) gaining 0.5% for the seventh day running. Gold attracted buyers as a “safe haven” amid rising geopolitical tensions and renewed concerns over the U.S. central bank’s independence. (Reuters)
Traders warned that political shocks are tough to value accurately, and jumping on every headline can backfire. A Reuters report showed gold hitting a new high, with European defence stocks climbing to record levels after Trump’s Greenland threat. Rheinmetall surged 19% last week, while Sweden’s Saab (SAABb.ST) jumped 22%. “Political (and) geopolitical risk is very hard to price,” said Idanna Appio of First Eagle. Jack Ablin at Cresset added that a military move on Greenland “would be a big deal,” potentially rattling equities and currencies. (Reuters)
The political scene is still unsettled. Nordic diplomats have pushed back against Trump’s assertion that Russian and Chinese ships are active near Greenland, according to the Financial Times. Denmark’s foreign minister called the idea of heavy Chinese and Russian presence close to Nuuk “not correct.” Reuters cited vessel tracking data that found no such ships near Greenland. (Reuters)
Germany’s Chancellor Friedrich Merz said Berlin is engaged in “very detailed discussions” with Denmark on boosting Greenland’s security. He also expects U.S. involvement, though the specifics haven’t been finalized yet. (Reuters)
Rheinmetall’s immediate focus isn’t just landing one big contract. Instead, it’s steadily positioning itself among Europe’s defense manufacturers as investors brace for a more complicated geopolitical landscape.
What shifts the trade now isn’t a single speech. It comes down to whether NATO and Washington back their Arctic talk with real action — or just let it slip away.
