European Futures Surge to All-Time Highs Amid Defense Spending Optimism

European futures have surged to unprecedented levels driven by a significant increase in defense stocks amidst expectations of rising military spending due to geopolitical tensions. This optimism has extended to Hong Kong, where markets are nearing three-year highs following constructive discussions between business leaders and President Xi Jinping. Analysts predict that the defense sector may be entering a 'supercycle', which could lead to enhanced economic growth in Europe, particularly if a resolution to the Ukraine conflict is achieved. Meanwhile, the US stock market is reacting to mixed economic signals, with investors awaiting key economic reports and FOMC minutes that will shape future monetary policy. The EUR/USD currency pair has also experienced a surge, influenced by a delay in Trump’s tariffs and weak US retail sales data that pressured the dollar. Overall, these developments reflect a complex interplay of defense spending ambitions and shifting economic dynamics across global markets.