European defense shares have experienced a significant rally, with stocks reaching record highs amid growing expectations of military spending increases from governments in response to ongoing tensions regarding Ukraine. The surge in defense stocks has been fueled by a strong commitment from leaders to bolster military support and prepare for a potential rearmament. Investors are reacting positively to these developments, leading to a noticeable boom in the defense sector, which has propelled major European indices like the FTSE 100 to all-time highs. The positive momentum is underscored by concerns over transatlantic relations and the urgent need for Europe to fortify its defense capabilities, following recent meetings between key political figures that left investors optimistic about future military contracts.