Paris, February 17, 2025 – European shares broke record highs today as leaders convened in Paris for an emergency summit to address Ukraine peace talks, while also considering President Donald Trump’s evolving approach to Russia.
The meeting takes place amid hopes for de-escalation and concerns that Europe might be sidelined in critical discussions, particularly with Trump’s interest in direct engagement with Russian President Vladimir Putin.
The pan-European Stoxx 600 index reflected this optimism, rising 0.4%. France’s CAC 40 and Germany’s DAX also saw significant gains. This surge is partly attributed to strong earnings reports and growing expectations for a resolution in Ukraine.
However, leaders are also carefully monitoring market indicators and potential volatility stemming from any shifts in U.S. trade policy.
Key Factors Driving Market Performance
Several factors contributed to the positive market sentiment. Renewed optimism surrounding potential peace negotiations has boosted investor confidence across European markets.
Additionally, better-than-expected earnings reports from European companies have further fueled market gains. Defense stocks have particularly benefited from rising military budgets and ongoing concerns about the war in Ukraine.
The CAC 40 is trading above its key moving averages, indicating a strong bullish trend.
The Relative Strength Index (RSI) is high at 76.33, suggesting the index is in overbought territory. The MACD for CAC 40 is currently at 147.40, which is above its signal line of 137.06, indicating a bullish momentum.
The FTSE 100 is currently trading above its key moving averages, indicating a bullish trend. The RSI is currently 65.42, placing it in the neutral to slightly overbought territory. The MACD value of 107.05 is slightly above the MACD signal line at 106.28, indicating potential bullish momentum.
The DAX has a closing price of 22,678.98, which is above all its key moving averages, suggesting a strong upward trend. The RSI of 78.59 indicates it might be overbought, and the MACD of 494.11 being above the signal line of 432.25 also supports the bullish momentum.
Summit Focus on Ensuring European Influence
Under the leadership of French President Emmanuel Macron, the summit aims to ensure that Europe plays a central role in any negotiations with Russia. Key objectives include securing European involvement to guarantee that agreements reflect the interests of Ukraine and its European allies while signaling a firm commitment to Ukraine’s security.
Additionally, leaders are focused on forging a unified European approach to security, especially given uncertainties surrounding U.S. policy.
European equities have shown strong performance, outperforming Wall Street peers. Looking ahead to 2025, analysts anticipate continued earnings growth supported by a weaker euro.
Sectors such as tech and industrial goods are expected to drive growth, while consumer-related sectors may face challenges.
Any progress towards peace in Ukraine could further boost cyclical sectors and ignite economic growth.
