"Negotiators from the US and Ukraine signalled meaningful progress toward a refined peace framework. Talks in Geneva were described as "highly productive," which could support a more positive sentiment for European markets. The constructive tone gave the euro a lift, reflecting expectations of reduced geopolitical risks in Europe. Still, the currency's upside remains constrained by fiscal and political uncertainty in France. Over the weekend, the National Assembly rejected key sections of the 2026 budget bill, reigniting concerns about Paris's ability to deliver fiscal consolidation"
"Economic data also surprised to the downside, with Germany's Ifo Business Climate Index slipping to 88.1 in November, undershooting expectations. The decline was driven by a sharp fall in the expectations component, reinforcing the view that Europe's largest economy remains fragile despite a slight improvement in current conditions. Eurozone yields fell across the curve, reflecting the cautious macro backdrop. Germany's 10-year Bund edged down to 2.68%, while the French 10-year yield eased to 3.45%."
The euro advanced as improved geopolitical sentiment and progress in US-Ukraine negotiations lifted risk appetite. Geneva talks were described as "highly productive," supporting expectations of reduced geopolitical risks in Europe. The currency's upside remained constrained by fiscal and political uncertainty in France after the National Assembly rejected key sections of the 2026 budget, raising doubts about Paris's ability to deliver fiscal consolidation and elevating sovereign risk concerns. Germany's Ifo Business Climate Index fell to 88.1 in November, driven by a sharp drop in expectations and signaling economic fragility despite slightly better current conditions. Eurozone yields fell; Germany 10-year at 2.68% and France 10-year at 3.45%.
Read at London Business News | Londonlovesbusiness.com
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