Stock markets cautious with eyes on Ukraine talks, US rates

London, Aug 19, 2025 (AFP)
European stock markets rose while Wall Street diverged on Tuesday as investors warily eyed signs of progress in talks to end Russia's war in Ukraine.
Markets were also waiting for a key speech by the US Federal Reserve chief this week for clues on interest rate cuts that could bolster the world's biggest economy.
Hopes for a Ukraine breakthrough rose after US President Donald Trump said he spoke by phone with Russian counterpart Vladimir Putin, following a meeting with Ukrainian President Volodymyr Zelensky and European leaders at the White House.
Zelensky said he was ready for what would be his first face-to-face talks with Putin since Russia's invasion nearly three and a half years ago.
Wall Street opened mixed, as the broad-based S&P 500 and the tech-heavy Nasdaq indexes retreated while the Dow rose.
London, Paris and Frankfurt stocks all closed higher following a lacklustre session for Asian stock markets.
Defence stocks fell sharply as chances grew for a breakthrough in Ukraine peace talks, with Germany's Rheinmetall dropping 4.7 percent and France's Thales down 4.1 percent.
Investors were also eagerly awaiting a speech on Friday by US Federal Reserve chief Jerome Powell at the annual retreat of global central bankers in Jackson Hole, Wyoming.
Traders hope Powell will provide more clues about a widely expected interest-rate cut at the Fed's September meeting, after data last week provided a mixed picture about inflation.
"Markets seem to be exercising some caution ahead of the Jackson Hole meeting later this week and as talks over a peace agreement between Russia and Ukraine remain inconclusive," said AJ Bell head of financial analysis Danni Hewson.
Oil prices, which have been volatile for several days -- Russia is a major crude producer -- retreated by around one percent after gains on Monday.
"Oil prices have dropped a little as a deal edges closer, given that it's likely to lead to an easing of sanctions on Russia energy imports, increasing supplies on global markets," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Japan's Nikkei briefly hit a record before retreating to close down 0.4 percent.
Shanghai ended flat while Hong Kong, Sydney and Seoul fell, and Singapore, Bangkok and Mumbai edged up.
Among individual companies, Intel shares advanced 6.9 percent in New York after Japan-based tech investment giant SoftBank said it would invest $2 billion in the troubled US chip giant.
The announcement comes as the US government is reportedly considering taking a 10-percent stake in Intel.
SoftBank shares dropped four percent.
- Key figures at around 1540 GMT -
New York - Dow: UP 0.2 percent at 44,984.14 points
New York - S&P 500: DOWN 0.3 percent at 6,429.26
New York - Nasdaq: DOWN 0.1 percent at 21,411.14
London - FTSE 100: UP 0.3 percent at 9,189.22 (close)
Paris - CAC 40: UP 1.2 percent at 7,979.08 (close)
Frankfurt - DAX: UP 0.5 percent at 24,423.07 (close)
Tokyo - Nikkei 225: DOWN 0.4 percent at 43,546.29 (close)
Hong Kong - Hang Seng Index: DOWN 0.2 percent at 25,122.90 (close)
Shanghai - Composite: FLAT at 3,727.29 (close)
Euro/dollar: FLAT at $1.1667 from $1.1666 on Monday
Pound/dollar: FLAT at $1.3501 from $1.3503
Dollar/yen: DOWN at 147.75 yen from 147.89 yen
Euro/pound: FLAT at 86.41 pence from 86.40 pence
West Texas Intermediate: DOWN 0.9 percent at $62.11 per barrel
Brent North Sea Crude: DOWN 0.8 percent at $66.07 per barrel
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S&P Global Ratings
Dow
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THALES
Hargreaves Lansdown
INTEL
SOFTBANK GROUP

Sumber : AFP