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European defence stocks slip after report Ukraine's allies start to mull ceasfire



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** Shares in European arms makers drop, with traders citing a report that Ukraine's allies are starting to look at a ceasefire

** A gauge of European aerospace and defence stocks .SXPARO is down 1% by 1233 GMT

** Bloomberg News reported, citing people familiar with the matter, that some of Ukraine's allies are starting to talk about how a negotiated end to the conflict could take shape

** Germany's Rheinmetall RHMG.DE, Sweden's SAAB SAABb.ST, Italy's Leonardo LDOF.MI, France's Thales TCFP.PA and BAE Systems BAES.L are down between 2% and 4%




Reporting by Danilo Masoni and Anna Pruchnicka; Editing by Amanda Cooper

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