Financial markets traded in a narrow range, with global equities hovering near record highs, following Donald Trump’s meeting with Ukraine’s president and European leaders. The discussions concluded on a hopeful note with a call for peace talks with Russia.
Oil prices were steady, with Brent crude slipping 0.2% after gains in the prior session, as investors assessed potential implications for regional stability and energy flows. Asian stocks edged 0.2% lower, while US Treasuries remained little changed after recent yield increases.
Intel Corp. advanced 5.4% in after-market trading after SoftBank Group announced a $2 billion investment in the company’s common stock.
Markets reflected cautious optimism about the Ukraine peace process after Trump urged Vladimir Putin to begin planning a summit with Volodymyr Zelenskiy. Attention now turns to a pivotal week ahead as the Federal Reserve’s annual Economic Policy Symposium begins Thursday in Jackson Hole, Wyoming, with traders awaiting signals on the path of interest rates.
Trump proposed a one-on-one summit between Ukraine and Russia’s leaders, followed by a trilateral meeting involving the US, marking the latest step in efforts to broker an end to the conflict that has lasted more than three years.
US Treasuries eased for a third consecutive day ahead of Federal Reserve Chair Jerome Powell’s speech on Friday. Powell is expected to outline the Fed’s new policy framework, providing insights into its approach toward inflation and employment goals.
Interest-rate swaps currently indicate an 80% probability of a 25 basis-point rate cut by the Fed next month, with markets fully pricing in two cuts by the end of the year.
This week’s Jackson Hole speech is anticipated to be the focal point for investors, with the debate shifting from whether the Fed will cut rates to how much and how quickly.
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