German Bond Yield Jumps to 16-Year High, Ukraine Agrees to Temporary Ceasefire U.S. Terms

Bridgette Randall
12 Mar, 2025
London

European markets rebounded amid hopes of a ceasefire between Russia and Ukraine, and the euro rose to a multi-month high. 

Benchmark indexes in Frankfurt, Paris, London, and Milan advanced after Ukraine agreed to a 30-day ceasefire, according to a social media post by the U.S. president.

However, diplomats in Europe were cautious about the possibility of a lasting ceasefire as both sides remain far apart. 

Ukraine is looking for the return of land occupied by the Russian forces since 2014 and additional security guarantees from the North Atlantic Treaty Organization. 

So far, Russia has shown no interest in ceding any land to Ukraine, and President Vladimir Putin has asked for the removal of financial sanctions imposed by the European nations. 

Bond yields in Germany soared to a 13-year high and above 2.9% as leading political parties negotiated to form a coalition government, which could sharply increase government borrowing. 

 

Europe Indexes and Yields

The DAX index increased by 1.3% to 22,617.90, the CAC-40 index edged higher 1% to 8,017.76; and the FTSE 100 index advanced by 0.5% to 8,541.46.     

The yield on 10-year German bonds inched higher to 2.90%, French bonds decreased to 3.58%, the UK gilts moved up to 4.64%, and Italian bonds edged lower to 3.95%.

The euro increased to $1.09; the British pound was lower at $1.29; and the U.S. dollar was higher and traded at 88.27 Swiss cents.

Brent crude increased $0.31 to $69.87 a barrel, and the Dutch TTF natural gas was lower by €0.18 to €43.24 per MWh.

 

Europe Stock Movers

INDITEX dropped 2.3% to €48.90 after the Spain-based fashion retailer reported results for fiscal 2024.

The parent company of apparel retailer Zara proposed a dividend increase of 9% to €1.68 per share for 2024, payable in two equal payments on May 2 and on November 3.

Porsche Automobil Holding SE eased 1.5% to €38.99 after the German luxury vehicle slashed its profit outlook amid uncertainty about the global demand. 

Vehicle sales in the fourth quarter amounted to 91,316 units, compared to 83,413 units in the same period in 2023.

PUMA SE dropped 22.4% to €21.41 after the sports products maker's weak outlook and dividend cut overshadowed the results of the fourth quarter.

Zealand Pharma soared 32% to DKK 647.0 after the Danish biotech company struck a deal with Switzerland-based Roche Holdings AG.