The initial market reaction of defense stocks to the U.K.’s June 23 vote to leave the EU was generally positive. The largest U.S. defense stocks outperformed the S&P 500 on June 24. Stocks in U.K. companies in which defense is a factor were mixed, though generally they did not drop as much as market indices. French, German, Italian and Swedish stocks of firms with defense components also were mixed. The initial reaction suggested investors viewed U.S. and some European defense ...

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