European bond yields traded at multi-year highs amid talks of sharply higher government borrowings, and the euro struggled to hold on to its recent advances amid escalating tariff wars with the U.S.

European markets rebounded, and German bond yields jumped to a 16-year high as coalition partners hammered out an infrastructure spending and government borrowing plan. Ukraine agreed to a 30-day ceasefire plan proposed by the U.S.

Investors were encouraged after political leaders announced plans to ramp up arms production and infrastructure development and overlooked U.S. trade policy uncertainty.

European markets struggled to advance after a week of choppy trading, and bond yields edged higher and the euro hovered near multi-month high. European leaders pledged to support Ukraine and speed up arms production after the U.S. withdrew its support and pushed for an immediate ceasefire with Russia.

Benchmark indexes in Europe trimmed weekly gains amid heightened geopolitical uncertainties and chaotic U.S. trade policy. The euro logged its best weekly gains after the ECB signaled slower rate decreases and a resurgent inflation in the U.S.

The widely anticipated rate cut by the European Central Bank was the sixth since the current rate-cutting cycle began in May 2024. Retail sales in the eurozone rose at a slower pace in January.

European markets jumped after German political leaders agreed to set up a 500 billion fund to finance infrastructure spending and arms production to support Ukraine.



European markets dropped between 1% and 4% as investors weighed the prospects of a global trade war after the U.S. slapped tariffs on goods from Mexico, Canada, and China.

European markets advanced after defense stocks surged, and European leaders reiterated their commitment to expand their military support to Ukraine. Eurozone inflation eased, and the contraction in the manufacturing sector slowed in February.

European stock market indexes struggled to stay above the flatline after a week of trading. Inflation in Germany stayed above 2% and in France dropped to a four-year low amid weakening energy prices. The house price index in the UK advanced for the sixth consecutive month in February.

The Euro Area's economic sentiment rebounded to a five-month high in February amid softening pessimism among industrial goods producers. Swiss GDP growth accelerated in 2024. Spain's consumer price inflation rose to an eight-month high of 3% in February.

Positive earnings and optimism about the progress in ending Russia-Ukraine conflict supported market enthusiasm.

European markets lacked direction, and defense stocks extended recent gains amid rising possibilities of higher government spending in the region. Passenger car sales continued to struggle in January amid weakness in France, Germany, and Italy.

Germany's conservative party is likely to form the next coalition government, and the far-right party made significant gains in the eastern region.



European stock market indexes trimmed weekly losses, and the eurozone business activity index edged up slightly in February. The annual pace of the UK's retail sales volumed slowed in February, due to ongoing weakness in non-food store sales.