Germany scrubs F126 frigate plan, sending defense stocks lower

Germany reportedly plans to scrap the 12.8 billion euro F126 frigate program in favor of eight smaller Meko A-200 ships, a shift that sparked a selloff in defense stocks led by Rheinmetall (down as much as 14%). The move dims expectations that higher government spending will lift the sector and complicates Germany’s goal of a stronger conventional army by 2039.