Kering’s fall in market value triggers Euro Stoxx 50 exit

Rheinmetall AG’s surging stock price has earned the tank and munitions maker a place in the euro area’s main stock benchmark.

JPMorgan Chase & Co. strategist Pankaj Gupta wrote in a note that the German company will replace Gucci owner Kering SA in the Euro Stoxx 50 benchmark as of June 20, citing index compiler Stoxx Ltd. It will be the only pure-play defense name in the gauge, which counts Safran SA and Airbus SE among its members. Bloomberg News has contacted Stoxx by phone and email for comment.

Rheinmetall is being fast-tracked into the index after its shares roughly tripled so far this year amid a boom in European military spending. A 26% surge in May boosted the firm’s market value to almost €87 billion ($98 billion), making Rheinmetall bigger than more than half of the existi