Investors react to EU funding deal for Ukraine

SINGAPORE, ‌Dec 19 (Reuters) - European Union leaders decided on Friday to ‍borrow ‌cash to fund Ukraine's defence against Russia rather than use ⁠frozen Russian assets, sidestepping ‌divisions to secure a 90 billion euro loan.

German Bund futures dipped slightly in Asia hours and the euro eased marginally against ⁠a stronger dollar.

Here are what investors and market analysts are saying about ​the deal:    

KYLE RODDA, SENIOR MARKET ANALYST, CAPITAL.COM, ‌LONDON

"The big risk of ⁠using Russian assets to fund Ukraine's war effort is that it would cheapen European government paper and lead ​to higher rates on sovereign bonds. The flipside of that is that I would imagine this adds to the fiscal burden in Europe marginally."

"But I think that's a ​relatively ‍small cost compared to ​what would be incurred if governments around the world in certain countries - China is the big one - decide that its not worth buying European debt because it could expose them to similar risk."

GEORGE BOUBOURAS, HEAD OF RESEARCH, K2 ⁠ASSET MANAGEMENT, MELBOURNE

"It's a good deal. More required and coming. (Recent U.S.-Europe energy deals) compliment ​the EU fund for Ukraine." 

"While the geopolitical landscape has eased in H2 2025 there is also a risk that this recent detente is making ‌markets complacent. This is a risk for 2026 that is not priced in."

(Reporting by Tom Westbrook; Editing by Amanda Cooper)