European shares rose on Monday as leaders agreed to draft a Ukraine peace plan, while bitcoin surged after US President Donald Trump unveiled plans for a new strategic cryptocurrency reserve. The STOXX 600 index gained 0.2% and the euro rose 0.4% to $1.0416.
The news boosted European defence stocks, with companies like Rheinmetall, Leonardo, and BAE Systems surging 11%. Trump’s announcement on a new cryptocurrency reserve also revitalized the crypto market, with bitcoin rising by as much as 20% from last week’s lows below $80,000.
However, markets remain uncertain about US tariffs, which could impact business investments and spending decisions. The Federal Reserve is expected to cut interest rates on Thursday, but expectations around monetary policy are less clear due to the geopolitical backdrop.
The next major macro event is the January U.S. payrolls report due on Friday, which may influence Fed Chair Jerome Powell’s speech later in the week. Commodities saw mixed movements, with gold up 0.4% at $2,869 an ounce and oil down 0.4% at $72.49 a barrel.
Source: https://www.reuters.com/markets/global-markets-wrapup-1-2025-03-03