Global Market: Private capital crucial to Europe's defence push as funding bottlenecks persist

European defence sector needs private capital alongside public spending, with executives from Barclays, Goldman Sachs, JPMorgan, ING and Apollo highlighting persistent funding bottlenecks at an aerospace gathering that drew a record 600-plus finance delegates. Defence stocks have weakened after a sharp rally, with the sector index up just 1.3% year-to-date versus about 8% for the broader STOXX 600, and Franco-German group KNDS postponed its stock market listing. Valuations have corrected to more attractive levels, though complex procurement and supply-chain financing continue to restrict capital flow to smaller defence suppliers.