European shares marked a record closing high on Monday, boosted by defence stocks as investors priced in the likelihood of increased military spending in the region, following growing U.S. pressure.

Defense stocks continued their meager comeback on Wednesday, after President Donald Trump’s recent promise to slash military spending. European defense firms are still outpacing them by some distance.

US defense contractors are on shaky ground just a month into the new administration — taking a backseat to European peers — as mounting concerns over a deluge of policies including a tightened military spending budget send shock waves across the government-sensitive group.