Ukraine’s Zelenskiy: Agreement with von der Leyen to move forward actively on EU drone deal.

Ukrainian President Volodymyr Zelenskiy announced an agreement with European Commission President Ursula von der Leyen to actively advance a drone deal with the European Union. This development is expected to enhance Ukraine's military capabilities amid ongoing conflict, potentially influencing geopolitical stability in the region. The market transmission mechanism at play is risk appetite, as increased military support could bolster investor confidence in Ukraine's resilience. Assets most exposed include Ukrainian government bonds and equities, which may react positively to perceived strengthening of military and economic support. Traders will be particularly attentive to any subsequent announcements regarding the specifics of the drone deal and its implementation timeline.

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