Markets Rally on Ukraine-Russia Peace Talk Hopes

Europe's stock markets and currencies surged amid optimism about a Ukraine-Russia peace deal. The euro, Swiss franc, and British pound gained against the dollar. Oil prices fell, while gold rose slightly. Analysts focus on potential U.S. tariffs and high rates affecting future economic conditions.

On Thursday, European stock markets and local currencies saw significant gains, buoyed by optimism surrounding potential peace negotiations between Ukraine and Russia. This comes despite earlier concerns over persistent U.S. inflation data, which had created instability in bond markets.

Trade war worries kept gold in demand, following U.S. President Donald Trump's repeated threats to implement reciprocal tariffs on countries imposing duties on American goods. The euro appreciated by 0.3%, bolstered by Trump's recent communications with Russian President Vladimir Putin and Ukrainian leader Volodymyr Zelenskiy, sparking hopes for an end to the nearly three-year conflict.

In commodities, oil prices dipped as an impending peace deal could alleviate Russian oil sanctions. Furthermore, the bond market is closely reviewing U.S. inflation figures while staying cautious of potential Federal Reserve policies, which may impact future rate adjustments.

(With inputs from agencies.)