UK weapons maker stocks rise after former defence secretary appointed finance minister

LONDON, July 21 (Reuters) - London-listed defense stocks rose on Tuesday, outperforming European peers, a day after Britain's new Prime Minister Andy Burnham appointed former defence minister John Healey as finance minister.

Healey, in June, resigned from Keir Starmer's previous administration saying the then prime minister had been "unable" and the finance ministry "unwilling" to find the money to keep the country safe. 

Andrew Wishart, senior UK economist at Berenberg, said that Healey’s resignation as defence secretary because of insufficient funding "suggests that he will raise military expenditure", though how he will raise the revenue "remains to be seen." 

Babcock International shares rose 6.7%, Qinetiq gained 3.3% and BAE Systems added 3.1%.

The broader European aerospace and defence index gained 1.15%.  

(Reporting by Sophie Kiderlin, editing by Alun John)