The euro rose 0.4% during the Asian session, outperforming other major currencies and partially offsetting last week's losses. At the same time, the Polish zloty and Romanian lei also saw an increase.

The market's concerns about Trump's intention to impose tariffs on Canada and Mexico did not drag down the performance of the Asian market, which generally rose.

European leaders push for increased defense spending, Eurozone stock markets respond positively

European leaders have pledged to increase defense spending in response to a possible withdrawal of support from the United States. This news has driven up the stock prices of defense industry related companies, with significant increases in the stock prices of companies such as Rheinmetall in Germany, BAE Systems in the UK, Rolls Royce in the UK, and Leonardo in Italy.

However, bond futures in Germany and France have fallen, and the market is concerned that European debt issuance will further increase.

Europe is preparing to step forward, which reflects structural changes within Europe, "said Kieran Calder, head of Asia research at Union Bancaire Privee SA." This has driven some capital outflows from the United States this year

Market turbulence and defense spending focus triggered by Trump's tariff plan

The market is waiting for news that Trump is about to impose a new round of tariffs on Asian countries, Mexico, and Canada, while also paying attention to the dispute between the United States and Ukrainian President Zelensky.

Trump's conflict at the White House may affect the peace agreement with Russia and make US foreign policy more uncertain. At the same time, the increase in European defense spending is seen as a historic opportunity for Europe's autonomous defense, although some analysts warn of the risks that excessive optimism may bring.

Editor's viewpoint:

As European leaders strengthen their support for Ukraine and increase defense spending, the performance of the euro may further strengthen.