Following Donald Trump’s re-election, investor sentiment has become more optimistic about Ukraine’s future. Markets have responded very positively to any advancements toward a long-term and lasting peace in Ukraine.
The Economist reports that European asset markets are reacting most favorably. Share prices of several defense companies have surged by over 100% compared to their levels before Trump’s re-election. Meanwhile, shares of various American companies have declined by more than 10%.
This year, the European Stoxx 600 index has increased by 14% in dollars, while the American S&P 500 index has seen a slight decrease. The German DAX index has risen by nearly 25%.
Based on the revaluation of Ukrainian assets, investors view the end of the war as increasingly probable. Approximately $8.9B in bonds from Ukrainian companies are currently in circulation. The prices of the largest of these bonds, issued by energy, rail, and infrastructure companies, have risen since November 2024.
Investors have been more hopeful about the prospects for peace since Trump’s re-election, but those hopes were diminished following the Oval Office dispute, and have not rebounded since.