(Bloomberg) — The euro gained with Eastern European currencies as the region’s leaders scrambled to offer Ukraine their support amid concerns of a US pullback.
The common currency rose 0.4% against the dollar, outperforming major peers. The Polish zloty and Romanian leu also climbed. European equity-index futures pointed to a stronger open with defense stocks surging on Tradegate exchange. Asian stocks gained.
Markets are starting the week with geopolitics dominating as European leaders assemble what Britain called a “coalition of the willing” to secure Ukraine following an Oval Office clash between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy. China is also due to stage its biggest political huddle of the year just as US tariffs threaten to test Beijing’s ability to boost economic momentum.
“The US turnaround is certainly a historic opportunity for Europe to tackle the subject of an autonomous European defense with potentially very positive economic ramifications since we know that many innovations with military application can have significant civilian benefits – the internet for example,” said Christopher Dembik, senior investment manager at Pictet Asset Management. “But beware of excessive optimism.”
Bitcoin edged lower after a Sunday rally with Trump talking up his plan for a strategic crypto reserve.
Get the Markets Daily newsletter to learn what’s moving stocks, bonds, currencies and commodities.
In Asia this week, traders’ hopes are running high that a ramp-up in fiscal spending will be announced at China’s National People’s Congress to bolster domestic demand, offsetting the risk of US tariffs and sustain this year’s blistering stock rally.
“We are reasonably confident the AI-driven optimism and momentum in Hang Seng is here to stay in the near-term, but a period of consolidation is warranted following the record year-to-date gains,” said Wee Khoon Chong, a senior strategist at BNY.
Investors are waiting for news of any last minute negotiations to avoid a further increase in US trade tariffs on Chinese goods that are due to come into effect this week along with levies on Mexico and Canada.
Meanwhile, the prospect of a surge in defense spending by European countries has led to a sharp rally in the shares of companies involved in the sector, such as Germany’s Rheinmetall AG, the UK’s BAE Systems Plc and Rolls-Royce Plc as well as Italy’s Leonardo SpA. Still, German and French bond futures dropped amid concern about rising debt issuance by the bloc.
S&P Global Ratings on March 1 put a negative outlook on its assessment of France’s creditworthiness.
Rebuilding Ukraine would be a large undertaking, with total costs of nearly $500 billion, according to the World Bank. Steel and cement would be needed to restore infrastructure. Goldman Sachs Group Inc. economists estimate a peace deal would likely increase Russian gas supply to Europe and reduce gas prices by 15% to 50%.
“Europe is getting ready to stand up for itself — this reflects a structural change within Europe,” which has driven some of the rotation away from the US this year, Kieran Calder, Union Bancaire Privee SA head of equity research for Asia. “For China overall, we’re still a bit negative.”
Australian and Japanese shares rose on Monday. Mixue Group, China’s largest bubble-tea chain, surged in its trading debut in Hong Kong.
Prada SpA is moving closer to a deal to buy Versace from Capri Holdings Ltd. after agreeing to a price of nearly €1.5 billion ($1.6 billion), according to people familiar with the matter. Prada’s shares rose as much as 3.9% in Hong Kong Monday.
Indonesia’s stock gauge rose the most in four years, buoyed by a rebound in bank shares after JPMorgan upgraded the companies.
Thousands of Chinese delegates including ministry chiefs and provincial leaders will gather Wednesday in Beijing for the parliamentary meeting, where officials will set a bullish growth goal of around 5%, according to analysts surveyed by Bloomberg.
To get there, policymakers are expected to push China’s official budget deficit target to the highest in over three decades, pumping trillions of yuan into a system battling deflation, industrial overcapacity, a still-floundering property market and a trade war with the US.
Oil rose on Monday as the Trump-Zelenskiy row likely means that achieving a solution agreed upon by all parties — and therefore a easing of sanctions — will be harder harder. Gold also gained.
Elsewhere this week, the European Central Bank will give a policy decision after inflation readings in France and Italy supported the case for further cuts. Trump will also address a joint session of Congress just as two polls suggest he’s losing support from Americans concerned about the economy and inflation.
Key events this week:
Eurozone CPI, HCOB manufacturing PMI, Monday
UK S&P Global manufacturing PMI, Monday
Japan unemployment, Tuesday
Eurozone unemployment, Tuesday
US President Donald Trump’s speech to a joint session of Congress, Tuesday
Australia GDP, Wednesday
China Caixin services PMI, Wednesday
China’s National People’s Congress, Wednesday
Eurozone HCOB services PMI, PPI, Wednesday
BOE Governor Andrew Bailey and colleagues speak, Wednesday
Eurozone retail sales, ECB rate decision, Thursday
Eurozone GDP, Friday
US nonfarm payrolls, consumer credit, Friday
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.2% as of 6:35 a.m. London time
Nasdaq 100 futures rose 0.2%
The MSCI Asia Pacific Index rose 0.4%
Japan’s Topix rose 1.8%, more than any closing gain since Nov. 6
Hong Kong’s Hang Seng fell 0.2%, falling for the third straight day, the longest losing streak since Jan. 13
The Shanghai Composite fell 0.3% to the lowest since Feb. 7
Euro Stoxx 50 futures rose 0.8%
Currencies
The Bloomberg Dollar Spot Index fell 0.2%, more than any closing loss since Feb. 25
The euro rose 0.4% to $1.0413
The Japanese yen rose 0.1% to 150.43 per dollar
The offshore yuan fell 0.1% to 7.3009 per dollar
The British pound rose 0.2% to $1.2601
Cryptocurrencies
Bitcoin fell 1.9% to $92,533.40
Ether fell 4.6% to $2,410.08
Bonds
The yield on 10-year Treasuries advanced two basis points, more than any closing advance since Feb. 18
Germany’s 10-year yield was little changed at 2.41%
Britain’s 10-year yield declined three basis points to 4.48%
Australia’s 10-year yield advanced three basis points, more than any closing advance since Feb. 18
Commodities
Spot gold rose 0.2% to $2,862.64 an ounce
West Texas Intermediate crude rose 0.2% to $69.93 a barrel
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Greg Ritchie, Matthew Burgess, Julien Ponthus, Allegra Catelli and John Cheng.
(An earlier version corrected Zelenskiy’s title.)
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.
