NEW YORK: European stock markets experienced gains while Wall Street saw mostly declines as investors monitored potential progress in negotiations to end the Russia-Ukraine conflict.
Market participants are also anticipating a crucial speech by Federal Reserve Chair Jerome Powell later this week for indications about future interest rate adjustments.
Hopes for a diplomatic breakthrough increased after former US President Donald Trump disclosed a telephone conversation with Russian leader Vladimir Putin.
Ukrainian President Volodymyr Zelensky expressed readiness for direct talks with Putin, which would mark their first meeting since Russia’s invasion began three and a half years ago.
Wall Street’s performance was mixed, with the Nasdaq dropping 1.5 percent and the S&P 500 declining 0.6 percent, while the Dow Jones remained unchanged.
London, Paris, and Frankfurt markets all closed higher after a generally subdued trading session across Asian markets.
Defense sector stocks declined significantly amid growing optimism about peace negotiations, with Germany’s Rheinmetall falling 4.7 percent and France’s Thales decreasing 4.1 percent.
Investor attention remains focused on Fed Chair Powell’s scheduled address at the Jackson Hole economic symposium on Friday.
Traders anticipate Powell might provide clearer signals about potential interest rate reductions at the September policy meeting, following recent mixed inflation data.
AJ Bell’s head of financial analysis Danni Hewson noted that markets appear cautious ahead of both the Jackson Hole meeting and ongoing Russia-Ukraine peace discussions.
Oil prices declined after previous gains, reflecting market reactions to potential peace agreement developments that could affect global energy supplies.
Hargreaves Lansdown’s head of money and markets Susannah Streeter observed that oil prices dropped as a potential deal might lead to eased sanctions on Russian energy exports.
Japan’s Nikkei index briefly reached record levels before retreating to close 0.4 percent lower.
Shanghai’s market ended flat while Hong Kong, Sydney, and Seoul posted losses, with Singapore, Bangkok, and Mumbai recording modest gains.
Intel shares rose approximately 7.0 percent following news of a $2 billion investment commitment from Japan’s SoftBank Group.
White House Press Secretary Karoline Leavitt confirmed that the Commerce Department is finalizing details of an agreement that would give the government a stake in Intel in exchange for financial support. – AFP