European bonds fell as investors anticipated higher government debt sales to fund military spending amid Ukraine peace talks. Defense stocks rallied, with Rheinmetall AG jumping nearly 7%. German, French, and Italian bond yields rose, while the euro slipped against the dollar. The Stoxx 600 edged up 0.2%. U.S. markets were closed for Presidents’ Day.
Traders await a Paris meeting of European leaders for insights into security spending. Bloomberg Economics estimates defense upgrades and Ukraine aid could cost Europe’s major powers $3.1 trillion over the next decade.
Compare Top Forex brokers and start trading and investing with a trusted partner
Barclays analysts see limited upside for European currencies from a potential Russia-Ukraine ceasefire, noting security concerns keep the war premium low.
Asian markets climbed 0.4%, led by Chinese tech shares, as optimism grew around DeepSeek’s AI app. A meeting between President Xi Jinping and business leaders, including Jack Ma, further fueled gains. Goldman Sachs raised its MSCI China index target, citing technological advancements.
Japan’s economy expanded for a third straight quarter, with stronger corporate investment and exports. The yen strengthened against all G-10 currencies on better-than-expected GDP data, boosting expectations of a Bank of Japan rate hike.
Subscribe for our newsletter
Get Forex brokers reviews, market insights, expert analytics and education material right into your inbox for free!