European Stocks Surge, Pound Jumps as Ukraine Peace Talks Boost Optimism

European stocks climbed higher on the optimism fueled by ongoing talks between the US and Russia, sparking hopes for a potential end to the Ukraine conflict. The UK pound also strengthened as economic growth in the country surpassed expectations.

Key Points:

* The Stoxx 600 index gained 0.5%, marking a record high, amid an active earnings season.
* Nestle SA saw its shares jump 6% due to sales growth and profit margins exceeding forecasts.
* Siemens AG rallied after its quarterly update.
* Oil prices declined on speculation of easing risks to Russian supply.
* Ukraine dollar bonds outperformed peers in emerging markets.
* The euro and dollar fluctuated, reflecting an increased risk appetite as traders watched President Donald Trump's Ukraine peace talks with Russia.

UK Economic Growth:

The pound rose after the UK reported unexpected economic growth at the end of 2024. Gross domestic product increased by 0.1% in the fourth quarter, surpassing economists' expectations.

Corporate Highlights:

* Barclays Plc reported better-than-expected stock trading performance in the fourth quarter.
* Unilever Plc announced an ice cream unit listing in Amsterdam, London, and New York.
* Siemens shares surged on strong demand for its electrification products.
* Commerzbank AG plans to significantly improve profitability over the next few years.
* Nestle aims to boost sales growth by raising product prices, particularly in coffee, while controlling expenses.

Key Events:

* Eurozone industrial production (Thursday)
* US initial jobless claims and PPI (Thursday)
* Eurozone GDP (Friday)
* US retail sales, industrial production, and business inventories (Friday)
* Fed's Lorie Logan speech (Friday)

Market Movements:

* Stocks: Stoxx Europe 600 (up 0.3%), S&P 500 futures (down 0.2%), Nasdaq 100 futures (down 0.1%), MSCI Asia Pacific Index (up 0.6%), MSCI Emerging Markets Index (up 0.2%)
* Currencies: Bloomberg Dollar Spot Index (down 0.2%), euro (up 0.3% to $1.0416), Japanese yen (up 0.2% to 154.12 per dollar), offshore yuan (up 0.2% to 7.2944 per dollar), British pound (up 0.3% to $1.2483)
* Cryptocurrencies: Bitcoin (down 1.7% to $96,048.75), Ether (down 0.3% to $2,673.77)
* Bonds: 10-year Treasury yield (down two basis points to 4.60%), Germany's 10-year yield (unchanged at 2.47%), Britain's 10-year yield (unchanged at 4.53%)
* Commodities: Brent crude (down 0.7% to $74.64 per barrel), spot gold (up 0.3% to $2,911.77 an ounce)

This article was generated with the assistance of Bloomberg Automation.