Euro Rises as US-Russia Talks Spur Ukraine Hopes
The euro rose and European stocks rallied to a record on optimism that US-Russia talks could end the Ukraine war.
The combined currency climbed as much as 0.6%, extending its longest winning streak this year as prospects for an end to the conflict boosted appetite for riskier assets. The dollar retreated, oil fell further on speculation that risks to Russian supply may ease, and Ukraine dollar bonds rose the most among emerging-market peers.
Europe’s Stoxx 600 gained 0.7%, also lifted by positive earnings updates from the likes of Nestle AG and Siemens AG. US equity futures posted small moves as Wall Street prepared for another batch of data after Wednesday’s hot inflation numbers forced traders to push out bets on the next Federal Reserve interest-rate cut to December.
Peace in the Russia-Ukraine conflict “could eliminate war-related costs, particularly in energy, reduce uncertainty, and potentially boost business confidence and investment—crucial for Europe’s largest economies,” said Susana Cruz, a strategist at Panmure Liberum. “While sectors like defense might face a temporary selloff, this is likely to correct over time, as recent conflicts have underscored the need for increased defense spending.
The Bloomberg Dollar Spot Index fell 0.2%. The euro rose 0.4% to $1.0424. The British pound rose 0.4% to $1.2502. The Japanese yen rose 0.4% to 153.79 per dollar.
Source: Bloomberg
