The euro rose 0.4% against the dollar, outperforming major peers, as European leaders assembled a “coalition of the willing” to secure Ukraine amid concerns of a US pullback. The Polish zloty and Romanian leu also climbed.
European equity-index futures pointed to a stronger open with defense stocks surging on Tradegate exchange. Asian stocks gained, driven by traders’ hopes for China’s National People’s Congress to announce fiscal spending measures.
A surge in defense spending by European countries led to a sharp rally in shares of companies involved in the sector, such as Rheinmetall AG and BAE Systems Plc. However, German and French bond futures dropped amid concern about rising debt issuance by the bloc.
The US tariffs on Chinese goods set to come into effect this week have investors waiting for news of any last-minute negotiations. Meanwhile, the prospect of a surge in defense spending has led to increased optimism about Europe’s ability to tackle its own defense and reduce reliance on the US.
In China, policymakers are expected to push the country’s official budget deficit target to the highest in over three decades, pumping trillions of yuan into the system battling deflation. Oil rose on Monday as tensions between the US and Ukraine likely made achieving a solution harder.
The European Central Bank will give a policy decision after inflation readings in France and Italy supported the case for further cuts. The ECB’s rate decision is expected to have implications for the eurozone economy.
Source: https://finance.yahoo.com/news/euro-climbs-traders-focus-ukraine-225717677.html