European stock and currencies rise on Ukraine peace deal hopes, Reuters reports
Europe's main stock market and currencies are gaining amid growing optimism about a peace deal between Ukraine and Russia, Reuters reported on Feb. 13.
U.S. President Donald Trump held phone calls to Russian President Vladimir Putin and Ukrainian's Volodymyr Zelensky on Wednesday, Feb. 12, saying that negotiations to end the war in Ukraine will start "immediately."
Reuters reported that the STOXX 600, Europe's key stock index, reached new highs, extending its 8% growth already achieved this year and reaching a new record high. The growth was mainly buoyed by gains in Nestle and Siemens, in addition to talks of a peace deal.
The euro grew by 0.3% at $1.041, while the Swiss franc and Britain's pound gained the same percentage against the dollar, amounting to $1.102 and $1.248, respectively.
A peace settlement in Ukraine would be 'significantly positive' for Europe, potentially lowering energy costs and enabling reconstruction programs reminiscent of the Marshall Plan, ING currency expert Chris Turner told Reuters.
Ukraine's government bonds continued to rise on the peace talk hopes, despite the fear among top European politicians that a deal was being forced on Kyiv and Europe would be left to shoulder the costs of post-war security and reconstruction in Ukraine.
Oil prices declined on the potential for a negotiated settlement of the war in Ukraine for the second day on Feb.13.
