March 4, 2025

Euro Rises as Defense Stocks Surge on Military Spending Bets 🚀

The euro gained 0.2%, while defense stocks soared amid expectations of increased European military spending. The Stoxx 600 index saw limited movement, but BAE Systems jumped 13%, Rheinmetall AG rose 16%, and Saab AB added 11%.

📉 Bitcoin Retreats
Bitcoin fell after a weekend rally driven by Donald Trump’s comments on a strategic crypto reserve.

🌍 Geopolitical Risks Drive Markets

  • European leaders formed a “coalition of the willing” to support Ukraine, following a dispute between Trump and Zelenskiy.
  • China’s major political gathering coincides with looming US tariffs that could strain its economy.

📉 Bond & Trade Concerns

  • German and French bonds declined amid debt issuance concerns.
  • S&P Global Ratings placed France on a negative outlook.
  • US 10-year Treasury yields rose three basis points.
  • Markets await potential US tariff hikes on China, Canada, and Mexico, set for Tuesday, impacting $1.5 trillion in trade.

🛢️ Oil & Gold Rise

  • Oil prices climbed as tensions suggest prolonged sanctions.
  • Gold gained, reflecting investor demand for safe-haven assets.
Share article