US President Trump and Russian President Putin aimed for a 30-day ceasefire, agreeing to refrain from striking energy facilities during this period. They also planned to exchange 175 prisoners of war, with Russia set to hand over 23 severely injured Ukrainian servicemen.
The leaders consented to form expert groups to resolve the Ukrainian conflict, with Putin requesting a halt to Ukrainian mobilisation and arms supplies as part of the ceasefire. Discussions did not indicate a major ceasefire breakthrough.
Market Reactions And Economic Indicators
Concerns in the US stock market persisted, resulting in the major indices closing lower. The Dow closed down by 260.32 points, the S&P fell by 60.46 points, and the Nasdaq dropped by 304.55 points.
In Europe, the German Bundestag approved Chancellor Merz’s fiscal reform, allowing increased defence spending and creating a €500 billion infrastructure fund. Major European indices reflected gains, with notable increases in Germany and Spain.
Crude oil prices declined by 1.39% to $66.64, while US housing starts reached 1.501 million, exceeding expectations. In Canada, CPI YoY registered at 2.6%, and industrial production increased by 0.7%.
In the forex market, the EUR/USD pair closed higher, and the GBP/USD also showed gains. The USD/JPY remained stable, while the NZD/USD held corrective support, and the AUD/USD returned above the 100-day moving average.
Currency And Commodity Market Trends
The current situation demands attention. Trump and Putin opted for a temporary ceasefire, agreeing to avoid energy targets and exchange captives. Moscow pledged to return 23 injured service members as part of a broader 175-person swap. Beyond this arrangement, the formation of expert groups to address the ongoing conflict was confirmed. However, Putin went further, urging restrictions on Ukraine’s military mobilisation and arms supplies. Despite discussions, no indication of an extended ceasefire emerged.
Traders should weigh the ongoing uncertainty. The major US indices finished the session lower, reinforcing risk aversion. The Dow lost 260.32 points, while the S&P declined by 60.46. A deeper retreat unfolded in the Nasdaq, which moved lower by 304.55 points. The reaction mirrored ongoing caution. These movements underscored persistent concerns, as market sentiment remained skewed toward defensiveness.
Despite this, European markets responded differently. The Bundestag approved Merz’s proposed fiscal measures, allowing a boost in defence funding and a €500 billion allocation towards infrastructure projects. German and Spanish indices posted clear gains, suggesting confidence in regional stability and growth initiatives.
Energy markets faced renewed pressure. Oil prices dipped by 1.39%, closing at $66.64 per barrel, emphasising shifting demand expectations. Meanwhile, US housing starts surpassed projections, reaching 1.501 million. Canadian CPI YoY registered at 2.6%, in line with controlled inflation trends, while industrial production rose marginally by 0.7%.
Currency markets reflected adjustments. EUR/USD and GBP/USD finished higher, highlighting relative dollar softness. USD/JPY remained unchanged, signalling balance in demand. NZD/USD held within corrective support levels, while AUD/USD climbed back above its 100-day moving average, confirming renewed short-term strength.
