World stocks steady, oil slides as Trump and Putin meet in Alaska
&imwidth=600&imheight=450&format=webp&quality=medium "World stocks steady, oil slides as Trump and Putin meet in Alaska")
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, US. Photograph: (Reuters)
Global equities remained flat near record highs amid high-stakes talks between US President Trump and Russian President Putin over Ukraine. Wall Street saw the Dow reach an intraday record, gaining 0.08%, while the S&P 500 and Nasdaq fell slightly.
Global equities traded flat but hovered near record highs on Friday as US President Donald Trump and Russian President Vladimir Putin held high-stakes talks in Alaska over the war in Ukraine. According to Reuters, investors largely stayed on the sidelines as the outcome of the meeting could shape the prospects of a ceasefire in Europe’s deadliest conflict since World War Two.
On Wall Street, the Dow Jones Industrial Average briefly touched an intraday record, becoming the last of the major US indexes to set a new peak this week. By the close, the Dow was up 0.08 per cent, while the S&P 500 slipped 0.29 per cent and the Nasdaq fell 0.40 per cent, dragged down by technology, financials, industrials and utilities.
Talley Leger, chief market strategist at The Wealth Consulting Group in New Jersey, told Reuters that “this market continues to move higher and the story is just earnings and margins,” adding that stronger services inflation was boosting profit margins in the US economy. Fresh data showed US retail sales rose 0.5 per cent in July from the previous month, signalling resilience in consumer demand even as producer price data earlier in the week reignited inflation concerns.
Europe and Asia stay cautious
In Europe, the STOXX 600 index touched a near five-month high before closing flat at 0.06 per cent. Investors drew support from a largely upbeat earnings season but remained cautious ahead of the geopolitical talks.
The MSCI All Country World Index also steadied, trading at 951.70, just shy of Wednesday’s record 954.21.
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Japan posted stronger-than-expected GDP growth, with the economy expanding at an annualised 1.0 per cent in the April–June quarter, as per Reuters.
Bonds and currencies react
US Treasury yields edged higher as traders reassessed the outlook for Federal Reserve policy. The two-year note yield rose to 3.751 per cent, while the benchmark 10-year yield climbed to 4.32 per cent.
In currency markets, the dollar weakened 0.38 per cent against the Japanese yen to 146.72, slipped 0.15 per cent against the Swiss franc to 0.806, while the euro gained 0.48 per cent to $1.1702. The dollar index was last down 0.34 per cent at 97.85.
Oil and gold diverge
Energy markets saw a sell-off, with Brent crude down 1.5 per cent at $66.85 a barrel and US crude falling 1.8 per cent to $62.80. Analysts told Reuters that a breakthrough in Trump-Putin talks could affect future commodity prices.
Spot gold edged up 0.09 per cent to $3,338.65 an ounce, while US gold futures settled almost flat at $3,382.60.
Bitcoin cools after record run
Meanwhile, cryptocurrency markets stabilised after bitcoin briefly hit a record $124,480.82 on Thursday. By Friday, it had eased 0.78 per cent to $117,033.52, according to Reuters.
Stakes high in Alaska
The Trump-Putin meeting in Alaska was closely watched by investors. Trump has suggested that a second summit involving Ukrainian President Volodymyr Zelenskiy could follow if talks with Putin progress.
Ukraine’s government bonds have stalled at a distressed 55 cents on the dollar, reflecting investor caution. Shaniel Ramjee, co-head of multi-asset at Pictet Asset Management, told Reuters that markets have learnt “not to expect too much from these negotiations,” noting that Europeans and Zelenskiy must eventually be part of any final settlement.
(With inputs from the agencies)