London (AFP) – Stock markets diverged Monday ahead of talks between US President Donald Trump, Ukrainian counterpart Volodymyr Zelensky, and European leaders aimed at ending Russia’s war in Ukraine. The talks are a follow-up summit to Trump’s meeting with Russian President Vladimir Putin in Alaska, which failed to produce a ceasefire. Zelensky, who is under pressure from Trump to give up Crimea and abandon its NATO ambitions, stated ahead of the gathering in Washington that Russia “should not be rewarded” for its war.
London, Paris, and Frankfurt stock markets were all lower in midday trading on Monday. “The focus is still on Ukraine this morning, as the world reacts to the Trump-Putin summit in Alaska last Friday,” said Jim Reid, managing director at Deutsche Bank. Oil prices fluctuated as investors weighed the impact of talks between Trump and Zelensky on Russia, a major crude producer. “With less talk of tougher sanctions on Russia, oil prices dropped back as supply concerns faded,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. “But amid the ongoing uncertainty Brent crude has begun creeping higher,” she added.
This week, investor eyes will also be on any clues on US interest rates at the Federal Reserve’s annual retreat at Jackson Hole, Wyoming. The Fed chair’s speech at the retreat has “often been used to send important policy signals,” Reid noted.
In Asia, Shanghai, Sydney, and Taipei were higher Monday, while Hong Kong, Seoul, and Jakarta fell back. Japan’s Nikkei ended up, posting a new record high and adding to gains on Friday after better-than-expected economic growth data. Thailand’s economy also grew by 2.8 percent in the second quarter, the country’s economic planning agency said on Monday, boosted by strong exports ahead of US tariffs taking full effect.
Before the Alaska talks, US stocks wavered on Friday after mixed economic data, with retail sales up but an industrial production index and a consumer survey both down.
**Key figures at around 1045 GMT:**
– London – FTSE 100: DOWN 0.1 percent at 9,130.31 points
– Paris – CAC 40: DOWN 0.8 percent at 7,860.63
– Frankfurt – DAX: DOWN 0.3 percent at 24,276.28
– Tokyo – Nikkei 225: UP 0.8 percent at 43,714.31 (close)
– Hong Kong – Hang Seng Index: DOWN 0.4 percent at 25,176.85 (close)
– Shanghai – Composite: UP 0.9 percent at 3,728.03 (close)
– New York – Dow: UP 0.1 percent at 44,946.12 (close)
**Exchange Rates:**
– Euro/dollar: DOWN at $1.1683 from $1.1704 on Friday
– Pound/dollar: DOWN $1.3545 from $1.3557
– Dollar/yen: UP at 147.41 yen from 146.85 yen
– Euro/pound: DOWN at 86.24 pence from 86.34 pence
**Commodity Prices:**
– West Texas Intermediate: UP 0.4 percent at $63.07 per barrel
– Brent North Sea Crude: UP 0.3 percent at $66.33 per barrel
burs-ajb/lth
© 2024 AFP
