Bitcoin soared as President Donald Trump revealed plans for a new U.S. strategic cryptocurrency reserve, while European stocks and the euro rose Monday after regional leaders agreed to draft a peace plan for Ukraine.
After President Volodymyr Zelenskiy and Trump clashed in the Oval Office, European leaders decided over the weekend to prepare a peace plan to present to the United States. Shares of European arms manufacturers surged as they acknowledged the need to increase defence spending, which bolstered the larger equity markets.
According to Reuters, parties negotiating the formation of Germany’s next government are thinking about establishing a defence fund. Yields increased by more than 10 basis points due to investors selling off 30-year German paper.
It is a turning point, and Europe understands that it must shoulder the majority of the burden (in terms of security and defense),” stated Peter Schaffrik, Global Macro Strategist at RBC Capital Markets.
More spending has become possible as a result of the German elections. The entire Zelenskiy-Trump controversy has accelerated everything. Shares of companies including Rheinmetall, Leonardo, and BAE Systems jumped 11% to 15%, contributing to a 1% daily gain for Europe’s STOXX 600 index. After negotiations between Trump and Zelenskiy broke down, the euro fell as far as 0.4% late Friday, but it then rose nearly 1% to $1.047. Both Nasdaq and S&P 500 futures saw a 0.2% increase.
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