Noticed the DAX taking a hit this morning - down about 0.26% to 24,276 points. The interesting part is why defense stocks are down today even though the market opened positive earlier. Guess it's the Ukraine peace talk signals that spooked investors. Trump mentioned a deal is getting closer, which naturally means less demand for defense plays.

Rheinmetall took the biggest beating with a 2.3% drop, and you've got Siemens Energy sliding 1.4% along with some other industrial names. The whole defense sector seems to be repricing on the possibility of fewer tensions. Meanwhile, why are defense stocks down today while others are holding up? Probably because traders are already looking ahead to what a more peaceful environment means for those companies.

There's also the holiday factor - market closes early tomorrow and stays shut for New Year, so nobody wants to hold aggressive positions. With no major economic data coming and corporate news quiet, the mood is just flat. Some of the safer plays like BASF, Mercedes-Benz, and Adidas are actually gaining 1-2% which tells you investors are rotating into less cyclical stuff.

The 10-year Bund yield dipped to 2.84%, still near last week's highs though. It's one of those quiet trading days where bigger moves are unlikely until we get past the holidays. Why are defense stocks down today? Peace talks basically. Simple as that.