Report: US Defense Contractors to See Continued Rise in Foreign Weapons Sales Under Next Administration

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chart moneyAnalysts say U.S. defense contractors should expect a continued rise in arms exports following Donald Trump’s victory Wednesday in the U.S. presidential election, Reuters reported Wednesday.

Mike Stone and Patricia Zengerle wrote analysts have said they think Trump would continue to support the supply of U.S. weapons systems to allied countries to help them develop their defense capabilities despite his call for international partners in East Asia and Europe to shell out more funds for their own defense.

The Defense Security Cooperation Agency announced on Tuesday that the U.S. posted $33.6 billion in total foreign military sales for fiscal year 2016.

Reuters also reported that stocks of major defense firms such as Raytheon, General Dynamics, and Northrop Grumman hit record highs on Wednesday as investors turned bullish on expectations of increased defense spending under Trump’s administration.

Executive Mosaic’s GovCon Index rose 5 percent for a record one-day gain and closing value Wednesday as investors bet on possible increase in defense outlays under the incoming administration.

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