Euro Surges, Stocks Rally on Ukraine Conflict Optimism

Market Highlights:

* Euro rallies 0.6% against the dollar, extending its winning streak.
* European stocks (Stoxx 600) gain 0.7%, lifted by positive earnings reports.
* US equity futures show modest movements ahead of inflation data.

Russia-Ukraine Conflict Impact:

* Prospects for an end to the conflict boost risk appetite.
* Peace could reduce energy costs, uncertainty, and boost business confidence.
* Defense stocks may face temporary selloff, but demand for increased defense spending remains.

Bond Market:

* Treasuries edge higher following recent selloff.
* Bond markets await producer price index data and 30-year Treasury auction.

Other Notable Developments:

* Pound rises after surprise UK economic growth in Q4 2024.
* Barclays shares plunge after unchanged earnings guidance.
* Unilever plans ice cream unit listing and share buyback.
* Siemens surges on strong electrification product demand.
* Commerzbank targets profitability boost amid takeover concerns.
* Nestle aims to boost sales growth by raising prices and cutting expenses.
* Nissan braces for losses as collaboration with Honda ends.
* British American Tobacco shares fall on lower-than-expected revenue growth guidance.

Upcoming Key Economic Events:

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

Market Movements:

* Stocks:
* S&P 500 futures unchanged
* Nasdaq 100 futures rise 0.1%
* Dow Jones Industrial Average futures little changed
* Currencies:
* Dollar Spot Index falls 0.2%
* Euro gains to $1.0424
* Pound strengthens to $1.2502
* Cryptocurrencies:
* Bitcoin drops 1.5% to $96,243.68
* Ether declines 0.2% to $2,678.35
* Bonds:
* 10-year Treasury yield falls to 4.60%
* Germany's 10-year yield declines to 2.45%
* UK's 10-year yield lowers to 4.53%
* Commodities:
* West Texas Intermediate crude falls 1.3% to $70.43 per barrel
* Spot gold increases 0.4% to $2,916.74 an ounce