Global Markets React to Euro Strength and Tariff Speculations

The euro gained strength and European stocks rose following a draft Ukraine peace plan by European leaders. Meanwhile, Wall Street eased as U.S. President Trump's impending tariff decisions stirred uncertainty. Bitcoin surged as Trump hinted at a U.S. strategic reserve involving digital assets.

In a week marked by geopolitical developments, the euro strengthened and European stocks saw gains following an agreement by European leaders to draft a Ukraine peace plan. The move comes as a response to an earlier clash between Ukrainian President Zelenskiy and U.S. President Trump, highlighting Europe's strategic alignment. Meanwhile, Wall Street experienced a downturn as investors braced for Trump's decision on tariffs involving Canada and Mexico, scheduled for an announcement on Tuesday.

Adding to market fluctuations, Bitcoin experienced a notable surge after President Trump suggested the creation of a new U.S. strategic reserve that could include cryptocurrencies. This potential pivot rekindled interest among crypto enthusiasts, who had faced recent setbacks. The digital currency saw a significant rise in value, offering a timely boost to a volatile market.

Furthermore, U.S. manufacturing data showed stability, though price hikes at the factory gate and slower material deliveries were flagged as potential challenges. As the European Central Bank prepares for its policy meeting, and U.S. economic indicators prompt speculations about interest rate adjustments, global markets remain on alert, awaiting further developments.

(With inputs from agencies.)