On February 17th, European financial markets experienced a significant surge, marking a notable moment of optimism as major stock indices across the continent showcased robust performanceThe overall market sentiment improved markedly, painting a picture of economic vigor and renewed investor confidence.

In the stock market, the German DAX index stood out with an impressive gain of 1.26%, closing at an all-time highGermany, known as the engine of the European economy, boasts a solid industrial foundation with globally competitive sectors like manufacturing and automotiveThis remarkable performance of the DAX may be attributed to the continuous expansion of German enterprises in international markets alongside the positive impacts stemming from domestic industrial upgradesMeanwhile, France’s CAC40 index saw a marginal rise of 0.13%. Although the increase is modest, it signifies the steady growth of the French economy, which is bolstered by strong industries such as luxury goods and aerospace

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The stability within these sectors plays a crucial role in supporting the upward trajectory of the stock market.

The UK’s FTSE 100 index rose by 0.41%, reflecting the country’s innovative strides in the financial technology and creative sectorsThese industries inject a new vitality into the UK economy, which in turn is mirrored through its stock market performanceItaly’s FTSE MIB index also climbed, posting a 0.92% increaseItaly's manufacturing and tourism sectors hold significant positions in the global market, and the rise in its stock market seems intricately linked to the favorable trends in these industries along with proactive domestic economic policies.

Moreover, the eurozone’s STOXX 50 index gained 0.48%, reaching a new closing high within just a dayNotably, defense stocks surged, with shares of Rheinmetall AG skyrocketing by 14%. This phenomenon correlates closely with expectations of alleviated geopolitical tensions across EuropeAs geopolitical worries ease, market anxieties surrounding national defense lessened significantly, leading investors to regain confidence in defense companies with increased investments pushing stock prices up.

The Russian stock market is also on a sustained upswing, with the MOEX index soaring 3.87% and the RTS index climbing 2.60%. Russia, a resource-rich country, has its economic progression tightly linked to energy marketsThe easing geopolitical environment not only enhances external economic conditions but may also foster trade relations, creating more opportunities for business development and consequently spurring stock market growth

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Analysts collectively assert that expectations around improved European geopolitical conditions are pivotal for bolstering market bullish sentimentsThis shift in expectations fills investors with confidence about future economic developments, prompting higher investments that further elevate stock values.

In the commodities market, a widespread rally was observedGold prices on the London spot market temporarily breached $2900 per ounce, hitting a peak of $2906.44, very close to historical highsCOMEX gold futures also increased by 0.36%, reaching $2911.20 per ounceAs a traditional safe-haven asset, gold tends to attract investor interest during periods of economic and political instabilityAlthough current geopolitical dynamics appear to alleviate tension, long-term uncertainties around policies, the re-inflation expectations in the U.S., and diminishing confidence in the dollar could still support elevated gold pricesPolicy unpredictability leaves investors concerned about future economic trajectories, prompting them to seek gold as a protective store of value; expectations for re-inflation in the U.S. might lead to dollar devaluation, with gold—positioned inversely to the dollar—seeing a potential price increase.

The crude oil market also displayed strong performance, as WTI oil futures increased by 0.93% to $71.37 per barrel, while Brent oil futures rose by 0.72%, settling at $75.28 per barrelThe rise in oil prices can be attributed partly to bolstering global economic recovery expectations, leading to increased demand for oil, and partly to improved geopolitical conditions reducing risks of supply disruptions, fostering more stability in price projections.

Furthermore, the Federal Reserve's monetary policy direction remains the focus of market attention

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