Ukraine ceasefire agreement boosts market confidence, Euro hits five-month high.

Affected by Ukraine's readiness to accept a one-month ceasefire, the Euro hit a five-month high on Wednesday, while the US's unpredictable tariff plans and concerns about a slowdown in the US economy led to significant market volatility. The US had previously stated that it would resume military aid and intelligence sharing with Ukraine, after Kiev had indicated it would accept the US's ceasefire proposal. European stock index futures rose by 0.8%, while the FTSE futures rose by 0.3%. Russia has yet to respond. The Euro against the US Dollar reached its highest level since October at 1.0947 during the New York trading session, stabilizing at 1.0913 during the Asian trading session. The Russian Ruble rose to a seven-month high overnight. The MSCI Asia-Pacific ex-Japan index, the broadest stock index in the region, rose by 0.2%, with the Chinese market remaining stable and the Japanese Nikkei index stabilizing after falling to a near six-month low the day before. Overnight, the S&P 500 index fell by 10% from its historical closing high in February, ending the volatile trading session with a decline of around 0.8%. President Trump threatened to double steel and aluminium tariffs on Canada to 50%, but the US government later made concessions after suspending plans to impose additional fees on exported electricity in Ontario. Due to concerns that tariffs and policy uncertainty will harm US economic growth, the US Dollar fell, US Treasury bonds rose, and the stock market experienced its most severe sell-off in months. Leona Burns, chief investment portfolio manager of Carter's Incorporated at Australian Wilson Asset Management's global fund, said: "It's clear he's trying to bring the economy back to the US." She added, "In this transitional period, he will work very hard, it's a very dynamic environment." "The tariffs and the uncertainty they bring are hindering decisions... so the impact on short-term income and economic growth in the US will be very interesting." Investor concerns about the economy also led to poor financial performance for retailers, with Dick's Sporting Goods (DKS.US) dropping by 5.7% due to dim prospects, and Kohl's (KSS.US) plummeting by 24% after announcing a decrease in sales. US inflation data for February will also be released, but it may not yet show the significant impact of tariffs.