The major European indices climbed to 7 years plus highs on Ukraine news.
Markets reacted with huge confidence on the success of the peace talks over Ukraine between German, Russian, French and Ukrainian leaders, which ended with an agreement of a Saturday night ceasefire. Sixteen hours of talks came to fruition on Thursday and though Ukraine was not able to achieve all demands, a ceasefire was agreed to be implemented on the weekend.
Europe50 [DJ EUROSTOXX50] surged to levels last seen in June 2008 at 3450.50, whilst the Germany30 [DAX] reacted by finding highs never seen on Metatrader4 before, rising to 10998.50. The France40 [CAC] also climbed to 2008 positions of 4766, and the Swiss20 [SMI Switzerland] is rising steadily on the back of the European stocks, reaching a high of 9223.50 in Thursday’s trading.
An additional statement from the IMF boosted the European bourses as Christine Lagarde, Managing Director of the International Monetary Fund, committed funding to Ukraine. She reported from Brussles, “I am pleased to announce that the IMF team working in Kiev has reached a staff-level agreement with the Ukrainian government on a new economic reform program that would be supported by an Extended Fund Facility of SDR 12.35 billion (about $17.5 billion, €15.5 billion) from the IMF, as well as by additional resources from the international community.”
This reduction in political tension between East and West has allowed a small rally on the ruble as the USDRUB sank slightly to 93.936 on Friday’s trading. A rise in WTI oil to 51.68 has also aided the Russian currency.
European indices are also affected by the ECB decision to extend a further €5 billion to Greece to meet immediate debts. In return Angela Merkel, Germany’s chancellor, insisted that Greece stick to its original bailout terms. Recently, with Greece receding from their hardline election mandate of no deal with the Troika, traders seem to be gaining some risk appetite on the market volatility brought about by political developments.
MT4 chart: Europe50
MT4 chart: Germany30
MT4 chart: France40
Trade indices CFDs on STOCK.com with full training given to all clients