European Stocks Dip as Markets Await Ukraine Talks and Jackson Hole Signals
European Markets Slip as Traders Brace for Geopolitical and Fed Cues
European stock markets edged lower on Monday as investors turned their focus to a high-stakes week of geopolitical and monetary developments. The pan-European STOXX 600 index dipped 0.2% after hitting a five-month high on Friday, while Germany’s DAX and the UK’s FTSE fell 0.3% and 0.1% respectively. Traders are closely watching Washington, where Ukrainian President Volodymyr Zelenskiy is meeting former U.S. President Donald Trump and European leaders to discuss potential paths toward ending the war in Ukraine.
Geopolitical Risk in Focus Ahead of Ukraine Peace Talks
The global market mood is cautious following Friday’s summit between Trump and Russian President Vladimir Putin in Alaska, which failed to produce a formal agreement. However, Trump signaled a growing alignment with Moscow’s push for a full peace settlement rather than a temporary ceasefire. Investors worry that this stance may pressure Ukraine into accepting a deal that favors Russian interests, a concern that is already weighing on European sentiment.
Jackson Hole Symposium Looms Over Market Outlook
Beyond geopolitics, attention is turning to the upcoming Jackson Hole Economic Symposium (August 21–23), where Federal Reserve Chair Jerome Powell is expected to outline the U.S. central bank’s economic outlook. Markets currently price in an 85% probability of a quarter-point rate cut at the Fed’s next meeting in September. Expectations for multiple cuts by year-end have supported global equity markets, with Asia-Pacific shares and Japan’s Nikkei reaching record highs earlier in the day.
Earnings and Economic Data Drive Wall Street Futures
Despite the uncertainty, solid earnings reports continue to buoy investor confidence, especially in the tech sector. S&P 500 and Nasdaq futures fell slightly by 0.1%, but remained near all-time highs. According to Goldman Sachs, the “Magnificent 7” tech giants posted a 26% year-over-year earnings growth in Q2, far exceeding expectations. U.S. retail giants like Walmart, Target, and Home Depot are set to report this week, potentially shedding light on the strength of consumer spending.
Dollar Firms, Oil Gains as Markets React to Trade and War Dynamics
In currency markets, the dollar nudged higher to 147.42 yen, while the euro dipped to $1.1682. Treasury yields remain mixed as traders weigh near-term rate cuts against long-term fiscal risks. Meanwhile, oil prices rose slightly following a statement from a U.S. trade adviser urging India to halt Russian crude purchases, claiming it funds the Ukraine conflict. Brent crude edged up to $66.08 per barrel, and U.S. crude rose to $63.11. Gold also saw a modest rebound, gaining 0.4% to trade at $3,349 an ounce.
Source: Reuters