Swedish defense group Saab's shares are down just over 1 percent despite the company announcing a new Lithuanian billion-dollar order this morning. Things are going harder for its German sector colleague Rheinmetall, which is down 3 percent.
Swedish Mildef, German Hensoldt and Italian Leonardo are also backing down on Monday morning.
Hopes for a possible peace deal are putting pressure on the sector's long-term growth potential. The Goldman Sachs index of European defense stocks is down more than 3 percent, after previously rising 74 percent this year.
