Euro Surges to Five-Month High Amid Ukraine Ceasefire Talks, Markets Volatile on U.S. Tariff Uncertainty
Singapore, March 12 (Reuters): The euro soared to a five-month high on Wednesday as Ukraine signaled readiness to accept a month-long ceasefire, boosting investor sentiment. However, global stock markets remained volatile due to uncertainty over U.S. tariff policies and concerns about a U.S. economic slowdown.
European Markets React to Ceasefire Talks
Following news that Ukraine had accepted a U.S.-backed ceasefire proposal, the U.S. government announced it would restore military aid and intelligence sharing to Kyiv. However, Russia has yet to respond, leaving the situation uncertain.
Despite this, European market sentiment improved:
• European equity futures climbed 0.8%.
• FTSE futures edged up 0.3%.
Euro and Rouble Gain Amid Geopolitical Developments
The euro surged to $1.0947, its highest level since October, before stabilizing at $1.0913 in Asian trading. Meanwhile, Russia’s rouble strengthened to a seven-month high overnight, reflecting renewed investor confidence.
Asian Markets Steady After Recent Selloff
Asian stocks showed mixed performance following the latest geopolitical and economic developments:
• MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.2%.
• Hong Kong (.HSI) and China (.SSEC) markets remained broadly steady.
• Japan’s Nikkei (.N225) held its ground after plunging to a near six-month low in the previous session.
Market Outlook
Investors remain cautious amid ongoing geopolitical tensions, shifting U.S. trade policies, and concerns over economic growth. The next market moves will likely depend on Russia’s response to the ceasefire proposal and further developments in U.S. trade and economic policies.
