European markets started the trading week with a modest uptick, though caution prevailed as investors remained focused on geopolitical risks and regional security concerns.
As of 03:55 ET (08:55 GMT), Germany’s DAX edged up by 0.4%, while the U.K.’s FTSE 100 rose by 0.3%
France’s CAC 40, however, remained flat, reflecting the cautious sentiment that is gripping the region.
U.S.-Russia talks and European response
Investor sentiment this week will largely be influenced by escalating geopolitical tensions, particularly the ongoing negotiations between U.S. officials and Russia regarding the Ukraine conflict.
European representatives and Kyiv have been excluded from these discussions, raising concerns that Europe is being sidelined in shaping the outcome of the war.
In response, French President Emmanuel Macron has invited European leaders to Paris for urgent talks, focusing on Ukraine and the broader security of the continent.
Meanwhile, former U.S. President Donald Trump expressed openness to allowing Europe to buy U.S.-made weapons for Ukraine, a development that could have significant implications for defense markets.
As these geopolitical developments unfold, Bund and OAT futures have dipped, reflecting growing concerns over market stability and the potential consequences of increased political risk in the region.
Anglo Platinum spin-off set for June, along with special dividend
On the corporate front, Anglo American (JO:AGLJ) Platinum made headlines by announcing a special dividend of 59 South African rand per share, totaling 15.7 billion rand, ahead of its planned demerger.
Pending shareholder approval in April, the company will spin off into an independent entity by June, with a primary listing on the Johannesburg Stock Exchange and a secondary listing in London.
Despite reporting a 40% year-on-year profit decline for 2024, driven by weaker South African platinum prices, the substantial dividend underscores the company’s confidence in its future prospects. Investors will be closely monitoring the demerger and its impact on global platinum markets.
German federal election in focus
In broader European news, investors are eyeing the upcoming German federal election. The region’s stock markets are largely priced for a near-perfect outcome, but this could create the risk of a market shock in the event of an unexpected result. With geopolitical uncertainty already at the forefront, any surprises in the election could further complicate the European market outlook.
U.K. housing market: Bottlenecks and tax concerns
The U.K. housing market is facing a bottleneck as buyers and sellers rush to complete deals before a property tax increase takes effect.
According to Rightmove (OTC:RTMVY), this rush is creating friction in the market, leading to delays in property transactions. However, despite fears of a wave of job cuts following Chancellor Reeves’ recent tax-raising budget, layoffs have yet to materialize, which has offered some relief to U.K. investors.
Crude oil prices steady as investors watch Russia-Ukraine peace talks
Crude oil prices showed little movement on Monday as investors focused on the ongoing developments regarding a potential Russia-Ukraine peace agreement, which could help alleviate sanctions that are disrupting global supply chains.
Brent crude oil rose 0.4% to $75.07 per barrel at 03:55 ET (08:55 GMT), while WTI crude held steady at $70.74.
Market participants continued to monitor the progress of peace negotiations, following the announcement by U.S. President Donald Trump and his administration that they had initiated talks with Russia to bring an end to the war in Ukraine.
